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Daily Technical Analysis: EUR/USD Reaches Key POC Zone: Bearish Pullback Or Bullish Trend


Currency pair EUR/USD

The bearish EUR/USD daily candle on Friday did have a bearish impact on Monday's price action and price is moving higher. There are, however, strong resistance trend lines (red/orange) present at 1.1825, which offers point of confluence (POC) that could turn price back down. The uptrend could still be alive if price manages to break above this POC zone and the previous top at 1.19.

The EUR/USD could be building an ABC (orange) correction within wave 4 (brown). The bearish breakout below support (green) could indicate a wave 5 (brown) continuation to complete wave A (purple). The wave 4 is invalidated if price breaks above the 61.8% Fib and resistance line (red).

Currency pair USD/JPY

The USD/JPY is building an ABC (orange) zigzag within a larger ABC correction (brown).

The USD/JPY is probably in a wave 4 (purple) as long as price stays above the top of wave 1 at 110.25. A more likely turning spot could be the 50% Fibonacci level of wave 4 vs 3.

Currency pair GBP/USD

The GBP/USD could be in a bearish breakout via a wave 1-2 (red) after the Cable broke below the support trend line (dotted blue).

The GBP/USD seems to have completed 5 waves (purple) within wave 1 (red) and is now building a potential ABC (purple) within 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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