Search, Analyse, Trade” is a series of Price Action and Elliott Waves analyses. Its detailed step-by-step description can be found over here. I invite you to today’s review of selected currency pairs and potential trading opportunities. The analyses are based on the Dukascopy sentiment that you can get here.

We observe only minor changes from yesterday on EUR/USD. The pair still remains locked in the box just above the internal support line and is slowly approaching the trend line. If the line is defended, we should see a continuation of the increases in the wave c of the d wave of triangle formation. Otherwise, the pair should head towards the lower consolidation constraint. Looking at the last wave of growth, you can find the impulse and wave b of irregular correction, which is why the current drop is treated as its c wave. Until the wave breaks out, this scenario remains my main one.

On the Ichimoku chart pair fights with Kijun i Senkou Span A. The Tenakan line joined the two, which moved up and cut through Kijun, creating a weak buy signal. If the lines are defended and the Chikou line goes above the price, the signal will be confirmed. Despite the fact that the sentiment remains neutral, with a slight movement towards the longs, I remain on the side.

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GBP/USD rejected the resistance zone. A fifth bearish wave was created about which I wrote yesterday. And because I could not find third of the possible wave b of the irregular correction, I assumed the continuation of the decreases. The scenario is currently being implemented. Wave 2b tested the lower limit of the resistance zone and moved down to create a 3c wave. Before the pair, an obstacle in the form of a trend line and a reaction to it should explain whether we are dealing with a simple correction and we will see a return to increases or there will build a downward impulse.

For this second scenario, speaks Ichimoku, where we see that the pair was under Kijun line. This line will now be a resistance to a possible 2B wave in the event of an impulse. Implementation of the bearish scenario may lead to declines towards the Senkou Span A. line. I am waiting for a re-test of the Kijun line and there I am going to lower the TF to look for a position. It is true that the sentiment has changed and supports longs, but a possible correction may change this.

Not much happens on USD/JPY. The pair moves upward within the resistance zone and slowly reaches its upper limit. As I wrote earlier, defeating the zone should lead to the implementation of H&S formation and larger increases. Rejection of the zone is probably a return to declines as part of the fifth wave of the last bearish wave or the extension of lateral movement in time.

On the Ichimoku chart also without major changes. The pair is inside the cloud and once again respects the Tenkan line. The Chikou line has dealt with the KIjun line confirming the recent increases. It is a pity that this movement is heavily jerky, without a clear momentum and it’s hard to get a good setup to take the position. The sentiment is neutral which allows us to enter a long position.

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Peter started his trading career in 2000. He spent first six years trading futures and created a system giving a 25% yearly return with limited risk. Since 2006 connected with foreign exchange market, where he trades using trend lines and breakouts, but spends the most of his time on Elliott Wave Theory. Here in Comparic, writes about Price Action and Waves in daily trading.