Please find here below this week’s wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts.Â
EUR/USD
The EUR/USD seems to have completed an ABC correction (red) within the wave 4 (blue). The wave 4 might become extended via a WXY formation if price does not break above the 1.2075-1.21 resistance zone. A bullish breakout could indicate the continuation of the uptrend via wave 5 (blue).
Daily chart:
The EUR/USD bullish price action is probably part of a wave 3 (blue) momentum.
Weekly chart:
The EUR/USD bullish momentum could be part of a wave A (brown). The strong bullish momentum seems to indicate that the bearish wave 5 (blue) of wave C (brown) is most likely completed.
Monthly chart:
USD/JPY
The USD/JPY bullish reversal is now challenging a new horizontal resistance zone (red). The bullish momentum is either part of a wave A (dark green) or wave 1 (light green). In both cases a bearish retracement could take place before a 3rd bullish wave occurs.
Daily chart:
The USD/JPY is in a larger triangle chart pattern with support (blue) and resistance (red) nearby.
Weekly chart:
The USD/JPY is most likely in a wave B (green) correction at the moment. Price could test lower Fibs like the 50%-61.8% Fib or show a break above resistance (red) and start wave C.
Monthly chart:
GBP/USD
The GBP/USD bullish momentum is accelerating strongly, which is most likely part of a wave 3 (blue).
Daily chart:
The GBP/USD is breaking above the resistance trend line (dotted brown), which makes a wave 4 (purple) less likely. A break above the 61.8% Fib and the bottom of wave 1 (orange line) invalidates the wave 4 and makes a bullish structure more likely.
Weekly chart:
The GBP/USD is showing a potential bullish breakout.
Monthly chart:
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