US Dollar Bullish Momentum Faces Final Resistance Zone

EUR/USD

4 hour

The EUR/USD broke below the support trend line (dotted blue) and is now testing the previous bottom (green). The support zone is a key decision level for a bullish bounce or bearish breakout and will decide whether USD strength or weakness will prevail. A bearish break makes a wave 4 (purple) pattern less likely.

1 hour

The EUR/USD needs to break above the resistance trend lines (orange) before a bullish breakout is likely. A bearish breakout would need to show strong bearish price action before continuation lower is possible.

GBP/USD

4 hour

The GBP/USD is in a triangle chart pattern with multiple support and resistance trend lines near it. Price will need to break the S&R to start a new trend.

1 hour

The GBP/USD indeed completed a bearish ABC (orange) zigzag yesterday, which is probably part of a larger WXY correction (grey). Price could show bullish reversal if price manages to break above resistance (orange). A break below the 100% Fib shows bearishness.

USD/JPY

4 hour

The USD/JPY is probably in a wave 4 (blue) as long as price stays below resistance (red).

1 hour

The USD/JPY could be building an ABC (green) correction within wave 4.

Good trading,

Chris Svorcik

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