EUR/USD Bearish Breakout Starts Wave 3 Momentum
|EUR/USD
4 hour
The EUR/USD has broken below the support trend line (dotted blue) which could kick start momentum within wave 3 (blue) towards the Fibonacci targets. A break above the resistance (red/orange) invalidates the wave 3 formation.
1 hour
The EUR/USD seems to be building a 5 wave extension (purple) within the 3rd wave (blue).
GBP/USD
4 hour
The GBP/USD is building a small correction but a break below support (green) could see wave 3 (blue) continue.
1 hour
The GBP/USD stopped and reversed at the 38.2% Fibonacci level of wave 4 (orange) as expected in yesterday’s analysis. A break above the trend line (orange) could see price challenge higher Fibs but a break above the 61.8% Fib makes a wave 4 unlikely.
USD/JPY
4 hour
The USD/JPY is in a descending wedge pattern with support (green) and resistance (orange) nearby. A bearish break could see price fall towards the Fibonacci retracement levels of wave B (blue).
1 hour
The USD/JPY broke below support (dotted blue) and completed a wave 4 (blue). Price remains in a 5th wave as long as it remains below resistance (orange).
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