our weekly Elliott Wave analysis reviews the EUR/USD monthly chart, the Bitcoin crypto currency daily chart and USD/JPY on the monthly chart.
EUR/USD Bearish Breakout Below Monthly Support
The EUR/USD monthly chart seems to be breaking below the critical support trend line (dotted green). What will this breakout indicate for the EUR/USD? Let’s review:
- The EUR/USD bearish breakout below the support line (dotted green) could confirm a strong bearish price swing.
- Although the previous bottom could stop price action from an immediate decline, our Elliott Wave analysis does favor a bearish continuation towards the -27.2% Fibonacci target.
- The bearish decline could unfold in a bearish trend channel.
- A bullish push above the broken trend line could place the bearish analysis on hold.
- For the moment, a bullish ABC (blue) pattern within wave B (pink) seems completed and price is moving lower within wave C (pink).
BTC/USD Bullish Pinbar at Support Line
Bitcoin (BTC/USD) has made a bullish bounce at the support trend line (green). Let’s analyze what that could mean for the BTC/USD:
- BTC/USD showed a bullish pinbar candlestick pattern yesterday. The bullish candle occurred at the key support trend line (green).
- The bullish bounce is probably indicating a bullish reversal.
- The Elliott Wave patterns suggest a WXY (blue) complex correction within a potential wave B (pink).
- A bullish ABC could unfold within the wave Y (blue) towards the main target zone around 50-60k.
- A break below the support trend line could place the bullish analysis on hold.
USD/JPY Wide Open Space Above after Strong Impulse
The USD/JPY is showing extremely strong bullish momentum:
- The USD/JPY bullish breakout above the resistance trend lines (dotted orange) has confirmed the bullish ABCDE (blue) triangle pattern within wave B (pink).
- The larger picture seems to indicate an ABC (pink) Elliott Wave pattern.
- The last 2 months, price action has accelerated which is indicating a wave 3 (blue) pattern within the wave C (pink).
- Due to the strong surge, a small retracement or pullback towards the previous top or last month’s close would be useful for potential entry positions.
- In general though, there seems to be plenty of space until the main Fibonacci -27.2% Fibonacci target has been hit.