5 Wave Patterns Developing on US Dollar Charts

EUR/USD

4 hour

The EUR/USD remains in triangle marked by support (green) and resistance (red) after completing 5 bearish waves down (brown). There is now a decent chance for a wave 2 (green) pullback or alternatively a wave B retracement.

1 hour

The EUR/USD completed an ABC correction (purple) yesterday but there is a decent chance that the corrective zone will see an expansion via a WXY (brown). This will allow price to retrace deeper within wave 2 (green). A break below the 161.8% target of wave C (purple) would invalidate the WXY (brown) structure.

GBP/USD

4 hour

The GBPUSD bullish price action pushed well above the bearish trend channel. Due to the impulsive nature of the price movement the swing has been labeled as a wave 3 (pink).

1 hour

The GBP/USD extended the 5 wave pattern on a lower time frame and could now be retracing as part of a wave 4 (pink). A break below the 50% Fibonacci would most likely lead to a change of the wave count.

USD/JPY

4 hour

The USDJPY broke above the inner resistance trend line (dotted orange), which most likely indicates the start of a bullish breakout. The potential for upside could be limited as a larger bearish ABC (brown) is in play with Fibonacci retracement levels and an outer resistance trend line (red) capping the rebound.

1 hour

On a lower time frame the bullish breakout has 5 legs which should complete either a wave 1 or wave A (purple). At the moment I am expecting a retracement for wave B (purple) which should see a bounce for a wave C (purple).