EUR/USD Remains Choppy but GBP/USD Breaks Resistance Line

EUR/USD

4 hour

The EUR/USD is testing important trend lines (green and light green), which could become support for a rebound. A bearish breakout would invalidate the current wave X count (lavender).

1 hour

The EUR/USD showed bullish momentum but it slowed down when it reached the resistance trend line (orange). Both an ABC (blue) and a 123 wave count are possible and depends whether price can break above the red resistance. The invalidation level of the ABC count is the bottom of wave A.

GBP/USD

4 hour

The GBP/USD has made a significant rally yesterday and managed to break above the resistance trend line (dotted red), which confirms the development of an ABC (green) or alternatively a 123.

1 hour

As indicated in yesterday’s wave analysis price turned at one of the Fibonacci levels of wave B (green), which was the 50 Fib in this case. The GBP/USD has approached the top of the bullish channel, which potentially serves as a bullish break or bearish bounce spot.

USD/JPY

4 hour

The USD/JPY needs to break above the resistance trend line (orange) before the bullish momentum has a chance of continuing.

1 hour

The USD/JPY has made a retracement to the 23.6% Fibonacci level. A break of the support (blue) could price correct to lower Fibs whereas a lack of a break could see price move up to the next Fibonacci target.

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

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