Bullish Momentum Supersedes US Dollar Downtrend

EUR/USD

4 hour

The EUR/USD completed a bullish ABC (purple) but stopped and respected the 61.8% Fibonacci retracement level of the wave 2 (green).  The quick fall after that could a first indication of wave 3 (green) start but the break of the uptrend channel (green) is needed before a confirmation is seen.

1 hour

The EUR/USD completed 5 waves up (blue) before falling strongly back to the downside. The bearish momentum could either be a wave A or wave 1 but I choose the latter due to the potential completion of wave 2 (green).

GBP/USD

4 hour

The GBP/USD too completed 5 waves up (dark green) before falling strongly back to the downside. The GU respected the 78.6% Fibonacci level.

1 hour

Wave C (orange) eventually showed an internal 5 wave within wave 5 (pink). After peaking at the 78.6%, the rapid decent is also a first clue that a bearish wave 1 (orange) or wave A has started.

USD/JPY

4 hour

The USD/JPY broke below the support trend line (dotted green) which is an indication of bearish triangle break.

1 hour

The bearish momentum could indicate the potential for a wave 1 (purple) or wave A.

Twitter: @elitecurrensea

Please note that the update is posted with permission from Admiral Markets
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