Currency pair EUR/USD
After the break above the 1.15 round level resistance, the EUR/USD continues the established bullish trend with yet another higher high. The uptrend shows no signs of weakening as yet and price is on its way towards the Fibonacci targets of wave 3 vs 1. Currently a retracement is taking place, which can be better seen on the 1 hour chart.
The EUR/USD has completed a wave 3 (purple) bullish momentum and price is most likely building a bearish correction within the uptrend. This retracement is indicated as a wave 4 (purple) and the Fibonacci levels of wave 4 vs 3 could act as support levels. A break below 1.15 makes a wave 4 unlikely.
Currency pair USD/JPY
The USD/JPY bearish momentum continues with another lower low. Price could either be building an ABC zigzag or a 123 wave pattern (orange). For the moment the wave 3 has an edge but price will need to stay below resistance (red) and reach the 161.8% Fib target of wave 3 vs 1.
The USD/JPY could be building another wave 4 retracement (grey) within the downtrend. A break below support (blue) could indicate the continuation of the downtrend whereas a break above the resistance trend line (red) and 61.8% of wave 4 vs 3 invalidates the wave 4.
Currency pair GBP/USD
The GBP/USD broke above the 1.30 resistance but the weaker inflation level, which was announced yesterday, caused the GBP to retrace back from 1.31 to 1.30 The broken resistance could now become a potential support level within the larger uptrend.
The GBP/USD seems to have completed an ABC (purple) correction within wave 4 (purple) and price has bounced at the 61.8% Fibonacci level. A break above resistance (red/orange) could start the uptrend continuation within wave 5 (purple).
