Currency pair EUR/USD
The EUR/USD used the key resistance at 1.13 (dotted lines) again but this time as a support level (blue box). As mentioned yesterday, the bullish continuation does not come as a surprise considering the potential wave 3s. Price is now above 1.14 and could be testing the 1.15 resistance soon which is the 200% Fibonacci level of wave 3
The EUR/USD indeed completed a light retracement for a wave 4 (orange) of a larger wave 3 (brown). Price is now moving towards the Fib targets of wave 3 vs 1.
Currency pair USD/JPY
The USD/JPY is moving higher within a wave 5 (orange) of wave C (brown). A break above the top of the channel (red) could see price move towards the Fibonacci targets of wave C (brown).
The USD/JPY needs to break above the resistance trend line (red) before a bullish continuation is likely within wave 3 (grey). A break below support could indicate that the waves 5 (orange/purple) are completed.
Currency pair GBP/USD
The GBP/USD bullish breakout above the resistance trend line (dotted red) makes a bullish wave structure more likely than a bearish variant. The wave count is therefore showing a wave 3 (orange), which could either extend above the 261.8% Fibonacci target or retrace for a wave 4.
The GBP/USD will build a wave 4 and 5 (orange) once price completes the final wave 5 (grey) within wave 3 (orange).
