Currency pair EUR/USD
The EUR/USD continues to push lower with strong bearish impulse, which could either be a wave 1 (light green) or wave A (dark green). The strong bearish trend is indicated by the resistance trend line (orange). A break above this level could signal the end of wave 1 or wave A and the retracement for wave 2 or B.
The EUR/USD broke below the 1.0750 support and support trend line (dotted green) as expected in yesterday’s wave analysis and continued with the wave 5 (pink). Price seems to be building an extra 5 waves (purple) which could take price down to the Fibonacci targets.
Currency pair GBP/USD
The GBP/USD remains in a triangle (red/green lines) chart pattern after breaking the smaller triangle yesterday (dotted orange). The wave WXY (orange) seems to be part of a wave X (blue) which could fit in a WXY (blue) within a larger wave E (green) triangle.
The GBP/USD seems to have completed the wave X (orange) at the 61.8% Fibonacci level mentioned yesterday at around 1.2525. Now price has turned and it seems to be building a bearish ABC (pink). A break below support (green) could confirm the bearish breakout whereas a break above resistance (red) would indicate an expansion of the wave X (orange).
Currency pair USD/JPY
The USD/JPY broke above the resistance trend line (dotted orange) and managed to retrace back to the 38.2% Fibonacci levels of wave B vs A, which could act as a resistance level. A break above this Fib could see price challenge the 50-61.8% Fibonacci zone. A bearish bounce could see price test the support trend line (green).
The USD/JPY indeed bounced at the Fibonacci levels of wave B vs A and continued with a strong bullish momentum which could be a wave 3 (pink). In that case, a wave 4 (pink) retracement could develop but price needs to stay above the 50% Fib of wave 4 vs 3 otherwise the wave 4 is invalidated.
