Sat, Jan 16, 2021 @ 02:05 GMT
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US Dollar Breaks Trend Lines And Recovers Impulsively

Currency pair EUR/USD

The EUR/USD has made a bearish turn at the 78.6% Fibonacci level of wave 2 vs 1 (brown) and has broken below the support of the rising wedge chart pattern (dotted blue). This bearish break could be a wave 1 (blue) of wave 3 (brown). The alternative scenario could be an ABC rather than a 1 (blue) which would indicate a larger correction.

The EUR/USD could be in a wave 4 correction (orange) within wave 1 (blue). After wave 1 (blue) there could be a deep pullback for wave 2 without breaking the top (this would otherwise invalidate the count).

Currency pair GBP/USD

The GBP/USD seems to have completed an ABC zigzag (blue) at the main 100% Fibonacci target of wave C vs A. The bearish reaction could be either impulsive or corrective. At the moment a complex correction (wave W blue) is the favourite.

The GBP/USD could be building an ABC zigzag (orange) or a impulsive 5 wave. This depends on whether price breaks the support level (blue) and falls below the 100% Fibonacci target of wave C vs A.

Currency pair USD/JPY

The USD/JPY broke above the resistance of the bearish triangle (dotted orange) and the downtrend channel (dotted red). This could signal the completion of wave 4 (purple) and the start of the wave 5 (purple).

The breakout could be part of a wave 3 (brown) within a larger wave 1 (blue).

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