Sat, Dec 04, 2021 @ 18:01 GMT
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EUR/USD, USD/JPY Complete Wave-1 And Retrace For Wave-2

Currency pair EUR/USD

The EUR/USD broke above the multiple key resistance levels (dotted lines) of the bearish trend channel. Price seems to have completed a bearish wave 1 (purple) and is now retracing back for a wave 2 (purple). The Fibonacci levels of wave 2 (purple) could therefore act as resistance. A break above the 100% level of wave 2 vs 1 invalidates the wave 1-2 (purple).

The EUR/USD could continue with its bullish momentum this morning towards the Fibonacci targets of wave C vs A. In that case a bullish 5 wave could be part of a larger bullish ABC zigzag. A bearish bounce at this spot could see price test and potentially bounce at the Fibonacci levels of wave X vs W (blue).

Currency pair GBP/USD

The GBP/USD is testing the resistance trend line (red) and a bullish breakout could see price test higher resistance (red/brown). A break below the support (blue) invalidates the wave 1-2 (orange)

The GBP/USD could build a bearish ABC zigzag (grey) towards the Fibonacci levels of wave 2 (purple) if price bounces at resistance. A break below the 100% Fib level of wave 2 vs 1 (purple) invalidates the wave structure. A bullish breakout could see price move towards the Fibonacci targets of wave 3 vs 1 (orange).

Currency pair USD/JPY

The USD/JPY broke the support trend line (dotted green) which makes it more likely that a bullish 5 wave (brown) pattern has been completed for a wave 1 (blue). Price could now be retracing back to the Fibonacci levels of wave 2 vs 1.A break below the 100% level invalidates this wave structure.

The USD/JPY is probably building a deep bearish zigzag correction within wave 2 (blue). Price could bounce at the Fibonacci levels of wave B vs A (brown), especially if the resistance trend line (red) breaks with a 3 wave ABC pattern. A bearish bounce could see price move lower within wave 2 (blue). A break above the 100% level of wave B vs A invalidates it.

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