HomeContributorsTechnical AnalysisDaily Technical Analysis: NFP Triggers US Dollar Strength And Bullish Rally

Daily Technical Analysis: NFP Triggers US Dollar Strength And Bullish Rally

Currency pair EUR/USD

The Non Farm Payroll (NFP) and unemployment rate in the US were released last week Friday. The news and data cause US Dollar strength which has sent the EUR/USD downwards. The bearish reaction could indicate the end of wave 3 (green) and start of wave 4 (green).

The EUR/USD could be building an ABC (purple) correction within wave 4 (green). The bearish breakout below support (dotted green) seems to be a wave 3 (brown) which means that the current bullish price action could be a wave 4 (brown) retracement. The wave 4 is invalidated if price breaks above the 61.8% Fib.

Currency pair USD/JPY

The USD/JPY indeed completed a wave B (orange) as expected in Friday’s analysis. Price is now above the resistance trend line (dotted orange) and falling wedge pattern, which could indicate a continuation within wave C (orange).

The USD/JPY is probably in a wave 4 (purple) as long as price stays above support (blue lines).

Currency pair GBP/USD

The GBP/USD broke below the support trend line (dotted blue) which could indicate a bearish breakout via a wave 1-2 (red).

The GBP/USD seems to have completed 5 waves (purple) within wave 1 (red) and is now building a potential ABC (purple) within 2 (red).

admiral
admiralhttps://www.elitecurrensea.com/
Elite CurrenSea Accessible Forex Trading Systems & Education With over 30 years of combined trading experience, we design, test, and provide successful Forex, CFDs & Crypto trading systems and solutions for retail and institutional traders alike.

Featured Analysis

Learn Forex Trading