Currency pair USD/JPY

The USD/JPY broke above the resistance top (dotted red) of the wave 1 (blue), which could start the wave 3 (brown) of wave 3 (blue). Price needs to reach at least the 161.8% Fibonacci target before the wave 3 can be confirmed.

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The USD/JPY keeps pushing with higher highs and price seems to be extending the wave 5 (orange) with 5 internal waves (magenta/pink). Once the wave 3 (magenta) is completed, then a corrective chart pattern such as a bull flag or contracting triangle must emerge to confirm wave 4 (magenta). A break of that pattern could lead to a wave 5 (magenta) of wave 5 (orange).

Currency pair EUR/USD

The EUR/USD indeed showed a bullish bounce at the 78.6% Fibonacci retracement level of wave B vs A (blue). Price is now approaching the resistance trend line (red) of the consolidation zone (red/green). A break above resistance (red) could see a test of the wave 2 Fibonacci levels (purple) although a break above the 100% level invalidates the wave structure. A failure to break resistance (red) could see expand within the consolidation (red/green).

The EUR/USD could be in a bullish 5 wave pattern (orange) within wave C (blue). A break below the fractal at the 50% Fibonacci level of wave 4 vs 3 would invalidate this wave structure. A break above resistance (red) could see a fragile breakout towards the Fib levels.

Currency pair GBP/USD

The GBP/USD broke above an inner resistance line (dotted orange) but remains in a downtrend channel (red lines). Price has both channel resistance (red) and horizontal resistance (orange) nearby. A bearish break below support (green) could see price move towards 1.20 which is a psychological round level, previous bottom (green) and 161.8% Fibonacci target.

The GBP/USD remains bearish in my view as long as price stays below horizontal resistance levels (orange). The divergence between the bottoms could indicate that a bearish break of support (green) might lack strength but price could reach the bottom of the channel again.

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The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.


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