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Daily Technical Analysis: US Dollar Waiting For Direction From US Non Farm Payroll


Currency pair EUR/USD

The Non Farm Payroll (NFP) numbers will be released later today for the US, which could significantly impact the US Dollar. The EUR/USD specifically is in an uptrend but could be losing some of its momentum because the angle of resistance trend line (red) is shallower than the support trend line (green). This indicates a mild rising wedge chart pattern, which is a potential reversal pattern. However, this does not stop price from continuing with the trend potentially towards the next target at the round level of 1.20 and Fibonacci targets.

The EUR/USD completed a wave 4 (grey) correction if price manages to break above the resistance trend line (orange). The bullish breakout could see price continue with one more higher high towards the wave 5 (grey) Fib levels.

Currency pair USD/JPY

The USD/JPY could show a potential bullish bounce at support to complete a wave B (orange) and start a wave C (orange).

The USD/JPY could have completed 5 waves (grey) within wave C (purple). A bullish breakout above resistance (orange) could see price challenge the Fibonacci targets of wave C vs A (orange).

Currency pair GBP/USD

The GBP/USD failed to break above the 1.3250 quarter level and made a bearish reversal during yesterday's interest rate decision by the Bank of England to keep rates at 0.25%. The bearish price action broke below the channel support (dotted green) but stopped at the larger support level. The lack of a bullish break is making a larger wave C (brown) now more likely.

The GBP/USD could potentially be in a bearish correction such as a wave 4 (grey) as long as price stays above the top of wave 1 (grey) indicated by the light blue line. Another valid wave structure could be a wave 1-2 (red) downtrend as the bearish momentum was strong. This would become more likely if price manages to break below the support trend lines (blue) or move correctively upwards as part of wave 2 (red).

Author: Admiral MarketsWebsite:
Admiral Markets
The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.
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