EUR/USD’s Major Resistance and GBP/USD’s Key Bottom

EUR/USD

4 hour

Whether wave X (brown) has been completed or not remains to be seen and depends on whether price will break above the long-term resistance line (orange/yellow) or bounce at it for more downside remaining in the down trend channel.

1 hour

The EUR/USD did break above the immediate resistance line (dotted yellow) but there was not much momentum during the break so the wave count has been labeled WXY (lavender).

GBP/USD

4 hour

The GBP/USD made yet another bearish breakout yesterday which took price down to the 78.6% Fibonacci level. This level has acted as a support and a bouncing spot as mentioned in yesterday’s wave analysis.

1 hour

Whether the GBP/USD will make a big bounce up or continue to break down depends on whether price can break below the bottom or stay above it.

USD/JPY

4 hour

The USD/JPY broke through the support level (dotted green) and continues with its bearish pressure. This could complete wave W (green) but it depends if the upside can show sufficient momentum today.

1 hour

The USD/JPY indeed displayed an ABC formation (orange) as mentioned in yesterday’s wave count and eventually built sufficient momentum to break below the support.

Twitter: @elitecurrensea

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

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