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. https://admiralmarkets.com/analytics/
EUR/USD
The EUR/USD is probably building a bearish correction within the larger uptrend. This could be either a wave 2 (purple) or a wave 4 (pink) unlikely. For the moment, a pullback within wave 2 (purple) seems to be the current wave pattern but a break below the 100% Fibonacci support level invalidates the wave 2 (purple). A break below the support zone (green) could indicate a larger bearish reversal.
Daily chart:
The EUR/USD is building a wave 5 (light purple) within a larger wave A (red). That wave 5 could already be completed if price breaks below the support on the daily chart. Alternatively wave 5 can extend higher before completing wave A (red).
Weekly chart:
The EUR/USD bullish momentum is most likely building a 5th wave (purple) within a wave A (red), which is part of a larger bullish ABC (red).
Monthly chart:
GBP/USD
The GBP/USD uptrend could be building a bearish retracement and a bullish bounce at the support trend line (blue) could indicate a continuation. A bearish break however could indicate a reversal.
Daily chart:
The GBP/USD could be in wave 4 (light purple) but a break above the resistance trend line (red) and bottom of wave 1 (light purple) invalidates the wave 4 pattern (light purple). A break below the support levels could indicate a downtrend within wave 5 (light purple).
Weekly chart:
The GBP/USD bearish breakout could see the continuation of the wave 5 (purple) whereas a bullish break above resistance (red) could indicate that the wave C has been completed at the bottom.
Monthly chart:
USD/JPY
The USD/JPY is in a difficult spot where it could be building a retracement within the downtrend or starting a new reversal. A break below the support trend line (blue) could indicate a downtrend continuation.
Daily chart:
The USD/JPY is expanding the bearish correction of wave Y (light purple) of wave B (red) after breaking below the support zone.
Weekly chart:
The USD/JPY could now fall towards the Fibonacci levels of wave Y (light purple).
Monthly chart:
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