EUR/USD

4 hour

The EUR/USD is building a small contracting triangle chart pattern, which is indicated by the support and resistance trend lines (red/green). A break below the triangle confirms the development of multiple wave Y’s within wave d (green). A break above the triangle indicates that wave X (blue) is still active. A break above the bigger resistance line (orange) indicates that a different wave X (brown) is still ongoing.

1 hour

The EUR/USD indeed completed an ABC zigzag within wave X (blue) as indicated in yesterday’s wave analysis. Whether resistance can turn the EUR/USD back down remains to be seen and depends on the breakout direction.

GBP/USD

4 hour

The GBP/USD has found support at the confluence of trend lines (green). The bullish bounce managed to break the resistance trend line (dotted orange), which could signal the start of a wave 5 (blue) within a larger ABC zigzag correction (green/pink).

1 hour

The GBP/USD broke above the resistance (dotted orange) with bullish momentum. The wave 5 (blue) could see an extension with 5 inner waves (purple). A break below the 100% Fibonacci level of wave 2 vs 1 invalidates this wave structure. A break above resistance (yellow line) could see the continuation of the Cable within wave 5 (blue).

USD/JPY

4 hour

The USD/JPY is again approaching the resistance trend line (red) of the daily downtrend channel. A break above resistance (red) confirms the end of the downtrend and the start of bullish price action. A break below the round level of 100 and support trend line (green) invalidates the current wave structure and indicates the continuation of the downtrend.

1 hour

The USD/JPY has completed 5 bullish waves (brown) so the current bearish price action is most likely a retracement within a wave 2 (blue). A break below the 100% Fibonacci level of wave 2 vs 1 invalidates this wave structure. A break above the channel (orange) and resistance (red) increases the chance of a bullish breakout within waves 3.