Currency pair EUR/USD
The EUR/USD turned around – yet again – for one more bullish push higher. The price action, however, remains very choppy and corrective. Price has also reached the next Fibonacci resistance: the 88.6% level. A break above the 88.6% makes a wave 2 (brown) unlikely and a break above 100% invalidates this wave structure. A break below support could spark waves 3.
The EUR/USD bearish price action was an ABC correction (green) and price could have completed a bullish ABC correction too. The wave C (green) could continue higher if price breaks above resistance (red) and the 138.2% Fibonacci.
Currency pair GBP/USD
The GBP/USD broke above the bearish channel (dotted brown line). The price action in the channel is relatively choppy compared to the bullish price action and hence the wave count has been changed to reflect a potential bullish (green) wave count within wave 4 (purple).
The GBP/USD could expand the wave B (green) correction via an expanded WXY (blue) correction. A break above the 138.2% Fibonacci level invalidates the wave X vs W.
Currency pair USD/JPY
The USD/JPY made another attempt to reach the 38.2% Fibonacci level of wave 4 (purple). Either the 38.2% or 50% are likely bounce spots for such a wave 4 (purple).
The USD/JPY is building an ABC (orange) bearish zigzag within wave Y (brown).
