Currency pair EUR/USD

The EUR/USD indeed continued with the uptrend yesterday by breaking slightly above 1.09. Price has bounced at the 61.8% Fibonacci target of wave C (green) could extend towards the 100% Fibonacci target near the psychological round level of 1.10.

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The EUR/USD indeed completed a bullish wave 3 (orange) as indicated yesterday. A bearish retracement for a wave 4 (orange) seems likely at the moment and the Fibonacci levels of wave 4 vs 3 could act as support. A break below the 61.8% Fib makes a wave 4 less likely and a break below the channel invalidates it.

Currency pair GBP/USD

The GBP/USD broke above the resistance trend line (dotted red) and continues its strong bullish march higher within a wave C (orange).

The GBP/USD completed a bullish wave 3 (pink) and seems to be building a bearish retracement for a wave 4 (pink) at the moment. The Fibonacci levels of wave 4 vs 3 could act as support but a break below the 61.8% Fib makes a wave 4 less likely.

Currency pair USD/JPY

The USD/JPY is probably building a larger bearish ABC zigzag (brown), which could take price down to the 50% Fibonacci retracement support level of wave 4 vs 3 (purple).

The USD/JPY has divergence between the bottom of wave 3 (purple) and wave 5 (purple) which could trigger a retracement such as an ABC (orange) zigzag. A break below the 100% Fibonacci of wave B vs A invalidates the ABC pattern.

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