EUR/USD Bearish Momentum Approaches 1.05 Daily Bottom

Daily Forex Technicals | Written by Admiral Markets | Nov 21 16 05:09 GMT

Currency pair EUR/USD The EUR/USD downtrend is approaching the bottoms (green) from the daily chart, which could act as potential bouncing spots if price is indeed in a wave 5 (brown) of wave 1 (green). The EUR/USD is building a bear flag chart pattern (red/green). A bearish break could see price test the 1.05 support zone. A bullish break above resistance (orange) could indicate the completion of wave 1 (green). Currency pair GBPUSD The GBP/USD seems to be developing a bearish wave 3 (blue). A downtrend continuation is possible if price pushes below support (green). The GBP/USD is building a bearish trend, which is best indicated by the resistance trend line (red). A break above the 61.8% Fibonacci level would invalidate a wave 4 (purple). Currency pair USD/JPY The USD/JPY broke above the resistance trend line (dotted red) and psychological 110 level, which is confirming strong bullish momentum often seen in wave 3’s (blue / purple). The larger targets are at 112 and 115. The USD/JPY is moving to higher Fibonacci levels within wave 5 (green).

 

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Notes

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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EUR/USD Bearish Momentum Approaches 1.05 Daily Bottom