HomeContributorsTechnical AnalysisDaily Wave Analysis: Are EUR/USD, GBP/USD Developing Bullish Wave 1?

Daily Wave Analysis: Are EUR/USD, GBP/USD Developing Bullish Wave 1?

Currency pair EUR/USD

The EUR/USD bullish momentum continued yesterday with a bullish breakout above resistance (dotted orange). A break below the support trend line (blue) could see price retest the left shoulder (purple lines) which could create a potential inverted head and shoulders pattern.

The EUR/USD is probably in a wave 5 (blue) of wave 1 (purple). A break above the 78.6% Fib target could price extend the wave 5 to higher Fib levels whereas a bearish break could see price retest wave 2.

Currency pair GBP/USD

The GBP/USD bullish bounce seems to be showing strong momentum, which makes a wave 1 (green) more likely at the moment. A bullish break above resistance (red) could confirm wave 5 (brown).

The GBP/USD has either completed a 5th wave (grey) and will correct lower when it breaks support or it could break for one more higher high. A break below the 100% Fib of wave 2 vs 1 invalidates the wave 2.

Currency pair USD/JPY

The USD/JPY did not manage to break above the resistance trend line (red) and therefore could still be in a wave 5 (blue).

A bearish reversal took place at the resistance trend line and price seems to be building one more wave 5.

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