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 either building a bullish wave 3 (pink) or a wave C (not visible on chart yet). A break above the resistance (red) line makes a bullish continuation more likely whereas a break below the support trend line (blue) makes a bearish correction or reversal more likely.
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). A bearish bounce at the top (red) could start a larger ABC correction within wave 4 (purple).
The EUR/USD bullish momentum is most likely building a wave A (red), which is part of a larger ABC (red).
The GBP/USD bullish trend is challenging the Fibonacci levels of wave 5.
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 made a double bottom which could indicate that the bearish correction of wave B-2 has been completed. Price will need to break above resistance (red) to confirm the start of wave 3 or C.
The USD/JPY is in a wedge chart pattern with support (blue/green) and resistance (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.