Technical Analysis

Daily Wave Analysis: EUR/USD Breaks Channel Resistance With Bullish Wave-3 Momentum

Typography

Currency pair EUR/USD

EUR/USD broke the resistance trend line (dotted red) of the bearish trend channel with strong momentum. This is indicating that the downtrend is completed and more upside is likely. The bullish price action indicates that the wave 4 (light purple) is completed and price is expected to continue within the wave 5. The current momentum is typical for a wave 3 pattern (pink).

The EUR/USD is probably building multiple wave 3s now. The current wave 3-4 (blue) is building a bull flag pattern which could see an immediate bullish break or a bearish retracement towards the Fib levels of wave 4 vs 3 (blue).

Currency pair GBP/USD

The GBP/USD remains choppy and is unable to break above and below the support (blue) and resistance (red) trend lines. A breakout is needed before a larger directional move can be expected, although a bullish breakout still faces resistance from the Fibonacci levels of wave 2 (orange).

The GBP/USD completed the ABC zigzag correction (green) as expected in yesterday's analysis. The next wave depends on the breakout direction. The main scenario is probably that the wave Y (brown) sees price extend sideways.

Currency pair USD/JPY

The USD/JPY is still in its choppy bearish trend channel. A bullish breakout could test the resistance levels of wave X (pink). A bearish breakout below the 23.6% Fib could see a drop lower to the Fibonacci levels of wave 2 or wave B (light purple).

The USD/JPY is testing the Fibonacci support and trend line (green).

Author: Admiral MarketsWebsite: http://www.admiralmarkets.com/
Admiral Markets
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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