Weekly Wave Analysis EUR/USD, GBP/USD, USD/JPY 20 August 2018
Dear traders,
Please find below this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts.
EUR/USD
The EUR/USD is building a potential bullish pullback after a strong bearish breakout. The price could be in a wave 3 (purple), as long as the price does not make a very deep pullback that goes above the resistance zone at 1.15-1.1525.
Daily chart:
The EUR/USD seems to be building a bearish ABC (purple) correction within wave B (red).
Weekly chart:
The EUR/USD has completed wave A (red), and the price is most likely retracing to the Fibonacci levels of wave B (red).
Monthly chart:
GBP/USD
The GBP/USD bearish momentum is strong and seems to be building a wave 3 (purple).
Daily chart:
The GBP/USD has probably started the bearish wave 5 after the price has completed a wave 4 (light purple) correction.
Weekly chart:
The GBP/USD bearish breakout is probably indicating the start of wave 5 (purple), whereas a bullish break above resistance (red) indicates that a different wave pattern is valid.
Monthly chart:
The USD/JPY broke below the support trend line (dotted blue) which is probably part of a bearish WXY (pink) within the final leg wave E (light purple) of the triangle pattern.
Daily chart:
The USD/JPY could be building an ABCDE triangle (light purple) within wave B (red).
Weekly chart:
The USD/JPY is in the wave E (light purple) of the triangle pattern.
Monthly chart:
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.