Currency pair EUR/USD
The EUR/USD is building a minor correction within the larger uptrend (blue line). A bullish continuation is likely to see price test the 1.1750 round resistance level. The momentum is part of a wave 3 (orange) which is part of larger wave 5 (purple) of wave 3 (green).
The EUR/USD broke the support trend line (dotted blue) of the rising wedge chart pattern mentioned in yesterday’s analysis. Price retraced back to the 38.2% Fibonacci level of wave 4 (purple) and bounced at the support level. The bullish breakout above the correction and resistance trend line (dotted red) could price move towards the Fibonacci targets of wave 5 vs 1+3.
Currency pair USD/JPY
The USD/JPY has bounced the 200% Fibonacci target of wave 3 vs 1 (orange) but the retracement could stop at the resistance trend lines (red and orange).
The USD/JPY completed a wave 3 (green) and made a retracement to the 50% Fibonacci level of wave 4 vs 3. Price turned at the resistance and broke below the support trend line (dotted blue) which could indicate a bearish breakout towards the Fibonacci targets of wave 5 vs 1+3.
Currency pair GBP/USD
The GBP/USD could be building a correction via a WXY (purple) wave pattern. A break below the small channel (blue) would indicate the potential for price to retrace lower towards the 61.8% Fibonacci target of wave Y vs W.
The GBP/USD is completing an ABC (grey) correction within wave X (purple) unless price manages to break above the channel, which could see price test the previous top and Fibonacci levels.
