Welcome to weekly market overwiev, where we look for Price Action patterns and/or use Elliott Wave Theory.
EUR/AUD
Currency pair reached support zone, which may be a neckline of potential head and shoulders pattern. Downward move from the local high is a five. If this is a 1A wave, then after correction end we will see another decline inside 3C wave (H&S). If it is a C-wave of irregular correction, we will see another upward move (breaking above current highs). I was waiting for inside bar near this support – however it did not show up. Another downward move ending the 1A wave is still possible and probably some setup will form. If not, I will wait for right arm of head and shoulders pattern and look for short opportunities. Decline below support from current levels and its re-test from below will also give some short play scenarios.
GBP/JPY
Pair reached important support zone (from the weekly chart) and tries to initiate a rebound. It is possible, that it will be a stronger move, so a potential re-test of previously broken resistance will give a chance to look for corrective c-wave. Trend is bearish, so c-wave should be used to sell.
EUR/JPY
Currency pair tries to rebound from important support. Huge inside bar showed up and during last week trading we saw a fake breakout from it. Weekly chart shows a pin bar – there is a chance for stronger up-move. Looking from waves perspective, last low gives two possible scenarios. The first one is the end of the five. Second one shows the end of the third wave and the beginning of fifth wave, which should be a slow one and finish in the vicinity of last low. Traders using only PA patterns do not have to worry – pin bar that formed on weekly chart gives strong signal for limit order (50% retracement of the signal candle).
