Currency pair EUR/USD
The EUR/USD continued the uptrend yesterday after bouncing in the 1.15 support zone. Price reached the 161.8% Fibonacci target at 1.1650 and could continue to higher Fib targets when considering the strength of yesterday’s daily candle close near the high.
The EUR/USD showed strong bullish momentum after breaking above the resistance trend line (dotted red). The EUR/USD completed a wave 4 (grey) correction as expected in yesterday’s analysis and is continuing with wave 3 (orange). Currently price is building a small triangle. A bullish break could see an extension towards the Fibonacci targets whereas a break below support could price retest 1.1575-1.16.
Currency pair USD/JPY
The USD/JPY did not manage to break above the horizontal resistance levels (red) and continued with the downtrend. Price will need to break below the support trend line (blue) to confirm a wave 3 (orange) otherwise a wave C (yellow) could be the alternative.
The USD/JPY will need to break below support (blue) or above resistance (red) before a wave 123 or ABC becomes more likely.
Currency pair GBP/USD
The GBP/USD broke below the support trend line (dotted green) and round level of 1.30 which makes a bullish impulse less likely. Price is therefore most likely extending its correction towards the Fibonacci targets of wave Y (orange).
The GBP/USD seems to have completed a wave B (grey) triangle and an ABC (grey) within wave W (purple). The GBP/USD could potentially complete a new ABC (grey) within wave X (purple), which means that the Fib levels of wave X vs W could act as resistance.
