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 made a strong bullish push last week which could indicate that wave 4 (light purple) has been completed. The current bullish momentum however is now approaching a strong resistance zone (red), which could stop price from moving higher. This resistance could therefore create a wave 1-2 (pink) pattern.
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 is still in between the support (blue) and resistance (red) trend lines as price keeps building a larger sideways range. The potential breakout could would provide more information about the intermediate trend: bearish break below support could price fall towards wave 5 (purple) whereas a bullish break above resistance invalidates wave 4 (purple).
The GBP/USD needs to break below support (blue/green) before a larger downside becomes more likely. A break above the resistance trend line (orange) and bottom of wave 1 (blue) invalidates the wave 4 pattern (blue).
The GBP/USD is testing a larger support trend line (blue). A 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 is building a bearish retracement (wave 2/B) after bouncing at the resistance line (red) of the larger sideways range. Price is now at the 50% Fib level which has caused price to make a bullish retracement but the downtrend could continue once price breaks below the 50% Fib.
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 clearer.
The USD/JPY is looking for a breakout of the wedge pattern.