US Dollar Continues to Weaken and Increases Chances of Major Correction

3 min read

EUR/USD

4 hour

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The EUR/USD continued yesterday with its bullish bounce which could be part of an ABC correction (magenta) of a larger wave Y (blue) and wave 4 (light green). The failure for price to break below the bottom (green line) could indicate the potential for a bigger consolidation on the US Dollar.

1 hour

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Price action fits neatly within the uptrend channel (blue). A break above the channel is needed to confirm the wave 3 (green) of wave A (magenta).

GBP/USD

4 hour

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The GBP/USD has rallied all the way back from the bottom (green line) to the top of the range (orange line).

1 hour

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The GBP/USD is an uptrend channel (green lines) and will need to break above resistance (orange) or go back to the bottom of the channel before bullish could be expected.

USD/JPY

4 hour

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The USD/JPY is in a sizeable consolidation at the moment and is correcting within a wave Y (green).

1 hour

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Price is contained by a downtrend channel (blue) and a support trend line (green). The invalidation level of the ABC (purple) wave count is the top of wave X (green) which is the 100% Fibonacci level.

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