The EUR/USD failure to continue higher after the breakout could increase the probability of wave W (brown) being completed and the wave X (brown) starting.
The EUR/USD broke below the support trend line (green dotted) and could retrace to the Fibonacci retracement levels of wave X (brown).
The bearish pressure is most likely a retracement as part of the wave 4 (magenta).
The upside could have been part of a correction or a truncated wave 5 (which does not break the top). In both cases a wave 4 retracement is likely and price could bounce at any of the retracement Fibs. A break below the 61.8% would make the wave 4 count less likely.
The USD/JPY is approaching a break or bounce spot at the resistance trend line (red)
This chart shows the most likely wave count if price bounces at the trend line (red).
Please note that the update is posted with permission from Admiral Markets
read the original article on AdmiralMarkets.com