Currency pair EUR/USD
The EUR/USD broke the rising wedge chart pattern as mentioned in yesterday’s headline. Price broke below the support trend line during the FOMC statement and interest rate decision by the Federal Reserve in the US. The bearish fall is confirming the extended WXY (red) correction within wave 4 (blue). The Fibonacci levels of wave Y (red) and wave 4 (blue) could act as potential support levels.
The EUR/USD break of the rising wedge chart pattern occurred with strong momentum and hence price could continue with its bearishness and build an ABC (purple) correction.
Currency pair GBP/USD
The GBP/USD made a higher high but price quickly fell back during the FOMC statement. The bullish move could have completed the wave 3 (blue) and started the wave 4 (blue) correction.
The GBP/USD completed a ending diagonal within the last 5th wave (grey) before price fell quickly back to the support level (green). Considering the strong bearish momentum, price could continue lower via an ABC (purple) correction towards the wave 4 (blue) Fibonacci levels.
Currency pair USD/JPY
The USD/JPY received one more boost during yesterday’s FOMC statement. The USD/JPY moved up strongly after bouncing at the support trend line (green). Price has reached the resistance trend line (red) again.
The USD/JPY broke the resistance trend line (dotted orange) and is continuing with the uptrend.