​Weekly Wave Analysis EUR/USD, GBP/USD, USD/JPY 17 July 2017

July 17, 2017 05:00

Hello trader,

Please find here below this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts. More education, analytics, articles, and webinars can be found daily on Admiral Markets.

EUR/USD

One scenario is that the EUR/USD will break above the 1.15 resistance level and continue with the wave 5 (purple) of wave 3 (green). The other option is that it will build a larger correction within the wave 4 (green) towards the Fibonacci levels of wave 4 vs 3.

Daily chart:

The EUR/USD has reached an important round level of 1.15 and resistance trend line (red) which is a strong resistance zone. A bullish breakout could see the continuation of wave 3 (blue).

Weekly chart:

The EUR/USD bullish momentum is indicating the potential change of trend from bearish to bullish. A bullish breakout could confirm the development of a new wave A (brown).

Monthly chart:

GBP/USD

The GBP/USD broke above the resistance trend line (dotted red) last week which could indicate the continuation of the wave 3 (blue/green). Weakness in reaching the 161.8% Fibonacci target could indicate that bullish wave structure is a larger correction. Also a break below the support trend line (blue) would increases the chance of a bearish trend.

Daily chart:

The GBP/USD major trend line (orange) is bearish but price is showing a higher high and higher low, which might be the start of a bullish reversal.

Weekly chart:

The GBP/USD bullish momentum is either a reversal or a correction within the larger downtrend. For the moment this wave structure prefer the completion of wave C (green) at the most recent bottom.

Monthly chart:

USD/JPY

The USD/JPY reversal could have completed the wave ABC (brown) within wave X (blue). A new wave A (brown) of wave Y (blue) could be unfolding if the bearish momentum is able to break support such as the round level of 1.1250.

Daily chart:

The USD/JPY is in a contracting triangle chart pattern when looking at the support (green) and resistance (red) trend lines (red). For the moment, it seems likely that price is retracing back via a WXY (blue) correction to the Fib levels of wave B (green) or the support trend line (green). A break above the resistance trend line (red) could change the market structure and indicate a bullish trend.

Weekly chart:

The USD/JPY is most likely in a wave B (green) correction at the moment. A retest of the lower Fibs like the 61.8% Fib would confirm this wave structure whereas break above resistance (red) would invalidate it and make a bullish variant more suitable.

Monthly chart:

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