EUR/USD, GBP/USD Downtrends Retest Critical 1.22 and 1.0350 Levels

EUR/USD

4 hour

The EUR/USD continued to move lower and has now arrived at a bounce or break spot at the support (blue/green) levels. A break is needed before a wave 3 (green) continuation of the bearish trend becomes likely.

1 hour

The EUR/USD is most likely in a wave 4 (purple) correction where an ABC (blue) zigzag could occur.

GBP/USD

4 hour

The GBP/USD is most likely building a larger retracement within a wave 4 (blue) correction, which could mean a bullish bounce at the Fibonacci levels of wave X vs W. A break below those Fib levels (blue) however could spark a continuation of the downtrend. A wave 4 (blue) typically retraces back to the 23.6-38.2-50% Fibonacci levels.

1 hour

The GBP/USD could be extending the wave 4 (blue) correction with a WXY (orange) unless price break below the Fibs. A break above the resistance (red) could see price retest higher Fibonacci levels of wave 4 vs 3 (blue).

USD/JPY

4 hour

The USD/JPY broke above the resistance trend line (dotted orange), which seems to be part of a wave 5 (orange) of a larger bullish momentum. A break above the high (red) could see price continue with the uptrend towards the Fibonacci targets.

1 hour

The USD/JPY completed the wave 5 (pink) of wave 3 (green) before making a large bearish retracement towards the 61.8% Fibonacci level of wave 4 (green).

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