Currency pair EUR/USD
The EUR/USD retraces back to the broken resistance of 1.15 within the bullish trend which could turn out to become a support level. However, there is an interest rate decision today for the Euro zone by the European Central Bank (ECB) plus a follow-up press conference. These events will probably cause increased volatility and could heavily impact price action too.
The EUR/USD could still be completing a potential wave 4 (purple) as long as price stays above 1.15. A break below it will however invalidate this wave structure and could retrace deeper.
Currency pair USD/JPY
The USD/JPY has broken above the resistance trend line (dotted orange) before reaching the 161.8% Fibonacci target. This could indicate that an ABC (yellow) is taking place rather than a 123 impulse. One of the key resistance levels is the previous top and bottom (red) and round level of 112.50.
The USD/JPY seems to have completed wave 5 (grey). The retracement could be a pullback with the downtrend or the first bullish swing of a reversal. The support (blue) and resistance (red) levels could help with understanding the breakout direction.
Currency pair GBP/USD
The GBP/USD has retraced back to the broken 1.30 resistance level, which could become a potential support level within the larger uptrend.
The GBP/USD is building a contracting triangle which is indicated by the various trend lines. A break above resistance could see the continuation of the uptrend whereas a break below support could indicate a change of the current wave structure and bearish pressure.
