Weekly Wave Analysis EUR/USD, GBP/USD, USD/JPY 7 August 2017

Hello trader,

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. https://admiralmarkets.com/analytics/

EUR/USD

The EUR/USD uptrend almost reached the round level of 1.20 but last week's bearish candle on Friday during the NFP news event could indicate the completion of wave 3 (green) and the start of wave 4 (green). The EUR/USD could move back to the 23.6% Fibonacci level via an ABC (purple).

Daily chart:

The EUR/USD bullish break above resistance (dotted red) is part of the wave 3 (blue) momentum.

Weekly chart:

The EUR/USD bullish momentum indicates potential 5 bullish waves (see blue 123 weekly chart) within a larger ABC (brown) correction. The strong bullish momentum seems to indicate that the bearish wave 5 (blue) of wave C (brown) is most likely completed.

Monthly chart:

GBP/USD

The GBP/USD broke below the support (dotted blue) of the rising wedge chart pattern and could be building a wave 1-2 (red).

Daily chart:

The GBP/USD is approaching a major resistance trend line (brown) which is an important decision zone. Price will either show a bullish break or a bearish bounce. For the moment it seems likely that the Cable completed an ABC (brown) correction.

Weekly chart:

The GBP/USD could bounce at the resistance trend line (brown) and test the support lines (green/blue).

Monthly chart:

USD/JPY

The USD/JPY bearish momentum has completed 5 waves (orange) within wave A (brown) and price is now building a correction within wave B (brown).

Daily chart:

The USD/JPY is retracing lower via a WXY (blue) correction to the Fib levels of wave B (green) or the support trend line (green). A break above the resistance trend line (red) could change the market structure and indicate a bullish trend.

Weekly chart:

The USD/JPY is most likely in a wave B (green) correction at the moment. A retest of the lower Fibs like the 61.8% Fib would confirm this wave structure whereas break above resistance (red) would invalidate it and make a bullish variant more suitable.

Monthly chart:

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