“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.
EUR/USD, after breaking the lower consolidation limit, stopped at the support zone, where are the last lows. If growth variants are to take effect, the pair should start to reflect up in these areas. Then the variant with the formation of the triangle will be possible as the fourth wave of the last growth wave as well as with the simple correction in which the current drop would be its c wave. On the lower TF we see that to end of the wave with the perfect impulse, one more move under the low is required. After finishing it, we should see a reflection up. Overcoming the currently tested support negates the growth scenario.
On the Ichimoku chart without major changes. The pair was under the cloud and yesterday’s move was the re-test of the Senkou Span B line. Currently, the pair is trying to reject it, which should lead to a test of the lower limit of the support zone. Its defeat will lead the remaining lines, which are pro-bearish from the cloud, which will confirm the beginning of the downward trend. The return of the pair above Senkou Span A will give us a chance to move towards the Tenkan or Kijun lines. The sentiment remains focused on growth and defence of support, but to the signal is far away, which is why I stay on the side.
The partner of “Search, Analyse, Trade” series is a Dukascopy Europe broker who gives its customers access to ECN accounts in different currencies.
Trade on Forex, indices and commodities thanks to Swiss FX & CFD Marketplace. Open free trading account right now.
On GBP/USD we are watching the re-test of the upper limit of the internal support zone. Its rejection should lead to a continuation of declines towards 1.3890. The whole fall from the top looks like an impulse and therefore it should have its continuation in the form of a 3C wave. First, however, it must be completed, and there is missing one bearish wave.
On the Ichimoku chart, we see that the pair has reached the Senkou Span A line, which is the upper limit of a very narrow growth cloud. Its defeat should lead to the crossing of the Kijun and Tenkan lines, which will be a confirmation of the bearish movement. The Chikou line continues to rest on the line node, which can lead to rebound and correction of recent falls. The sentiment is slowly becoming neutral. We see a slight reduction in long positions and a slow increase in short positions. If there is a correction of declines and a signal appears on H4, we can search for the entry for a 3C.
USD/JPY wave after breaking above the key resistance zone overcame another level and heads slowly towards level 110,500. This level is the next supply zone and range for the formation of the inverted head and shoulders formation. The current increases are looking like the 3C wave, therefore the move towards the said level is very likely.
On the Ichimoku chart, we see that yesterday the pair stopped rising on the Senku Span B line of the bearish cloud. A small pullback arose, but today the pair is trying to overcome this level for the second time. If it works, and the Chikou line enters the cloud, there will be room for growth to continue. Any possible re-test of Senkou Span B by the price will be used to search for a position consistent with the momentum.