Market structure reviewing trend, patterns and S&R on EUR/USD, GBP/USD and USD/JPY

6 min read

Hello Trader,

The US Dollar has been strengthening significantly during the last few weeks. Will the USD uptrend continue or will there be a retracement visible in the near future? Today’s wave analysis reviews that question and more on the EUR/USD, GBP/USD and USD/JPY. Make sure to check out our live webinars this week for newest updated forecasts and analysis.

EUR/USD

The EUR/USD downtrend is approaching the bottoms (green) from the weekly chart, which could act as potential bouncing spots if price is indeed in a wave 5 (brown) of wave 1 (green). A bullish bounce at the support zone could cause a wave 2 correction (green) – see weekly chart.

Daily chart:
21-11-2016_eu_d

The current wave 4 (blue) consolidation seems to be completed when considering the strong bearish weekly candles, which would be confirmed if price manages to break below the bottom of wave b (green). A wave 1-2 (green) could occur before the support levels are broken. An immediate break of the support zone could indicate that a wave 3 is already in motion.

Weekly chart:
21-11-2016_eu_w

Once the EUR/USD breaks below the various support levels (green) it will be starting a new bearish momentum via wave 5 (blue) of wave C (purple).

Monthly chart:
21-11-2016_eu_m

GBP/USD

The GBP/USD seems to have completed a WXY (blue) correction within a wave 4 (green). A bearish breakout below the support trend line (green) could lead to a continuation of the downtrend.

Daily chart:
21-11-2016_gu_d

The GBP/USD is showing a bounce at support (green) but the trend remains bearish. A break below support could see price continue with the bearish impulse towards a new lower low

Weekly chart:
21-11-2016_gu_w

The GBP/USD falling towards the Fibonacci targets of wave C (green).

Monthly chart:
21-11-2016_gu_m

USD/JPY

The USD/JPY bullish momentum has been very strong, which is why the wave count is showing a wave 3 (blue/purple). Price managed to break above the psychological round level of 110 and is heading towards Fibonacci targets. Once the wave 3 (blue) impulse has been completed then a wave 4 (blue) retracement and wave 5 (blue) continuation is expected within wave 3 (purple).

Daily chart:
21-11-2016_uj_d

The USD/JPY is now showing a strong bullish impulse and accelerating towards the Fibonacci targets of wave 3 vs 1 (purple) after price broke above the resistance trend line (dotted orange).

Weekly chart:
21-11-2016_uj_w

The USD/JPY seems to be confirming that a wave B (green) retracement has been completed and price is starting a new wave C (green).

Monthly chart:
21-11-2016_uj_m

Wish you safe trading,

Nenad and Chris

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