? Breakouts and Wave Patterns EUR/USD, GBP/USD, and USD/JPY ?

4 min read

Hi traders,

the EUR/USD made a bullish retracement which respected the broken support and new resistance zone (red). Price is now continuing with the downtrend and testing the previous bottom plus 1.20 round level.

EUR/USD

4 hour

The bearish wave 3 (blue) needs to reach at least the 161.8% Fibonacci target which is the minimum for an impulsive wave 3. A break below would 1.20 would make the downtrend scenario more likely whereas a failure to break could still indicate that the 61.8% Fib is holding of the bullish wave 4 (pink) scenario.

1 hour

The EUR/USD bounced at the 23.6% Fibonacci retracement level and broke below several support levels. Price is now on its way to test the 1.20 psychological round level.

GBP/USD

4 hour

The GBP/USD is still pushing lower. The bearish momentum remains active and the downtrend is expanding the wave 5 (purple). A bearish break below 1.37 could see price make an extension towards the Fibonacci targets.

1 hour

The GBP/USD is probably completing a wave 4 (blue) correction.

USD/JPY

4 hour

The USD/JPY uptrend seems to be ready for a bullish continuation towards the psychological round level of 110, which is also a 38.2% Fibonacci level of the potential wave D (light purple). This could be a resistance zone where price completes a wave W (pink).

1 hour

The USD/JPY has completed a wave 4 (green) correction and is extending the wave 5 (green).

Good trading,

Chris Svorcik
Elite CurrenSea

.

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