Please find here below this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts. More education, analytics, articles, and webinars can be found daily on Admiral Markets.
The EUR/USD is moving lower as part of a wave 2 (pink). The Fib levels of wave 2 vs 1 could act as support and a potential bouncing spot. A break below the bottom of wave 2 and the 100% Fibonacci level invalidates the wave 2 and indicates that the wave 4 (light purple) is still active.
The EUR/USD bullish bounce could have completed the wave 4 (light purple) and started the wave 5 (light purple) within a larger wave A (red).
The EUR/USD bullish momentum is most likely building a wave A (red), which is part of a larger ABC (red).
The GBP/USD failed to break above the resistance trend line (red) and is now challenging the support zone (blue). A bullish bounce and break could be part of the wave 5 (orange) of wave C (green).
The GBP/USD needs to break below the support (green) of the bullish channel before a larger downside becomes more likely. A break above the resistance trend line (orange) and bottom of wave 1 (pink) invalidates the wave 4 pattern (pink).
The GBP/USD bearish breakout could see the continuation of the wave C (purple) whereas a bullish break above resistance (orange) could indicate that the wave C has been completed at the bottom.
The USD/JPY failed to continue and broke below the support trend line (dotted blue). The bearish breakout could indicate a larger correction within wave 2/B (light purple).
The USD/JPY is in a wedge chart pattern with support (blue) and resistance (brown/red) nearby. The wave B (red) could have been completed at the most recent bottom but price will need to break above support or resistance before the long-term direction becomes clear.
The USD/JPY is looking for a breakout of the wedge pattern.