Weekly Overview on Majors' Price Action

EURUSD – Is it an ABC Correction?

Last week the price has in firmed the Flag price pattern, by breaking above 1.1337. Bulls couldn’t get the price back up to the previous resistance (1.1437). The rally stopped around 1.1400 and fell all the way to the next local support from 1.1217.

The current corrective move seems to be an ABC pattern. This might mean that the price might come back on an up move, targeting a new high above 1.1465. From my point of view, such a scenario could be confirmed by another break above 1.1340. On the other hand, a break below the current support from 1.1217 could trigger drop towards 1.1050, or even lower to 1.1000. 

USDJPY – Back Above 111.00

                USDJPY has broken the local resistance, as said in my alternative scenario from last week. After the break, the USD rallied against the Japanese yen, went over 111.00 and almost hit 112.00. Currently it has retreated to retest 111.00.

                Looking on a four hour time frame, a big Descending Wedge was formed and the price broke outside. This could be a strong bullish signal. Another rally could start with a break above 112.00. This time the rally could get the price all the way back towards 114.50.

GBPUSD – Out of the Triangle

                The price of GBPUSD has stood in a Triangle price pattern from the beginning of February all the way to last week, when it broke the upper line. For the moment it seems to have found a resistance at 1.4500,but might not resist enough bulls’ pressure.

                A break above the current round number resistance could be another strong bullish signal. A future rally could get the price all the way to the half of the full target of the triangle. I would consider changing my view only if the price would come back towards the local support from 1.4311.