Forex market presents corrective waves during trading week
|EUR/USD
4 hour
The EUR/USD seems to be respecting the 38.2% Fibonacci retracement level of wave D (green) vs B. A bearish break below that Fib level could see price extend the bearish breakout below support (dotted green) towards the 50% or 61.8% Fibonacci levels.
1 hour
The EUR/USD broke the small contracting triangle chart pattern (orange/green) and posted a lower low. A break above the resistance line (orange) could start a wave B (blue) correction with resistance at the Fibonacci levels of wave B vs A.
GBP/USD
4 hour
The GBP/USD is expected to be in a wave 3 (pink) at the moment, which is confirmed when price breaks below the bottom (horizontal green). A bounce at that bottom (horizontal green) would indicate a wave change such as a larger triangle formation. A break of the resistance (red) would indicate a larger ABC correction within wave 4 (blue).
1 hour
The GBP/USD is building a small bear flag chart pattern (orange/green). A break below the support line (green) could extend wave 1 (green) to a lower spot. A break above the resistance line (orange) could start a wave C (blue) correction within wave 2 (green) with resistance at the Fibonacci levels of wave 2 vs 1.
USD/JPY
4 hour
The USD/JPY is approaching strong resistance (red) at the top of the daily downtrend channel, which could either cause a larger retracement for a bull flag chart pattern. A bullish break above it could start a larger bullish reversal (wave 1 purple).
1 hour
The USD/JPY bullish bounce at wave 4 (blue) and breakout above resistance (dotted red) has lead to a rally which is approaching the Fibonacci levels of wave 5 (blue) vs 1+3. Price could extend to higher Fibonacci levels above the 61.8% or retrace for a wave 4 (brown).
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