US Dollar support levels indicate key decision zone

Chris Svorcik Elite CurrenSea

EUR/USD

4 hour

The EUR/USD managed to break above the resistance trend line (dotted orange) yesterday but also was unable to push above the Fibonacci levels of wave X (blue) as expected. Only a break above the top (purple) invalidates the larger consolidation zone marked as wave X (blue). It seems more likely that a larger waves Y is developing within a contracting triangle on the daily chart (wave d green).

1 hour

Whether the EUR/USD will start the bearish momentum needed to start the wave Y (blue) remains to be confirmed. At the moment price has still two layers of support below it (green). A bearish break could indicate the start of a bearish ABC zigzag (green). A bullish bounce at support, however could see price retest higher resistance again like the 61.8% or 78.6% Fibonacci levels.

GBP/USD

4 hour

The GBP/USD is either building a wave 3 (pink) within a larger downtrend or wave d (purple) of a larger ABCDE contracting triangle (purple). A break above the 100% Fibonacci level of potential wave 2 (blue) vs 1 and resistance zone (red/orange) increases the chance of a wave d and e (purple) whereas a break below the bottom (blue) of wave b (purple) favours a wave 3 (pink).

1 hour

The GBP/USD broke the support trend line (dotted green) yesterday but price was unable to break below the previous bottom and trend line (solid green). A bullish correction via an ABC (grey) seems likely at the moment. The Fibonacci levels are expected to act as resistance.

USD/JPY

4 hour

The USD/JPY remains stuck between the resistance of the daily downtrend channel (red) and the support of the various bottoms (green) and 88.6% Fibonacci level of wave 2 (purple). A break below the bottoms invalidates the bullish reversal, whereas a break above the bearish channel confirms the potential for a wave 3 (purple).

1 hour

The USD/JPY made a double bottom yesterday and is reacting with strong bullish momentum. A bullish bounce could be the first indication of a new trend direction (wave 1 blue) but a break above the resistance (red) should confirm it.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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