EUR/USD, GBP/USD Downtrends Retest Critical 1.22 And 1.0350 Levels
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EUR/USD, GBP/USD Downtrends Retest Critical 1.22 And 1.0350 Levels
Written by Admiral Markets |
The EUR/USD continued to move lower and has now arrived at a bounce or break spot at the support (blue/green) levels. A break is needed before a wave 3 (green) continuation of the bearish trend becomes likely.
The EUR/USD is most likely in a wave 4 (purple) correction where an ABC (blue) zigzag could occur.
The GBP/USD is most likely building a larger retracement within a wave 4 (blue) correction, which could mean a bullish bounce at the Fibonacci levels of wave X vs W. A break below those Fib levels (blue) however could spark a continuation of the downtrend. A wave 4 (blue) typically retraces back to the 23.6-38.2-50% Fibonacci levels.
The GBP/USD could be extending the wave 4 (blue) correction with a WXY (orange) unless price break below the Fibs. A break above the resistance (red) could see price retest higher Fibonacci levels of wave 4 vs 3 (blue).
The USD/JPY broke above the resistance trend line (dotted orange), which seems to be part of a wave 5 (orange) of a larger bullish momentum. A break above the high (red) could see price continue with the uptrend towards the Fibonacci targets.
The USD/JPY completed the wave 5 (pink) of wave 3 (green) before making a large bearish retracement towards the 61.8% Fibonacci level of wave 4 (green).
The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces.
One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective.
As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication.
The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions.
In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan – on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.
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