Daily Forex Technicals | |
Currency pair EUR/USD The EUR/USD indeed built a bearish bounce yesterday at the 38.2% Fibonacci retracement level. The bullish momentum was strong which makes a wave 3 (purple) likely. A retracement for wave 4 (purple) seems to be taking place as price is making a triangle. The wave 4 seems likely as long as price remains above the 50% of wave 4 vs 3. The wave 5 could be short as price reaches the resistance trend line (red). A bearish correction could take place as the market awaits the US Presidential Election next week Tuesday. The EUR/USD finished a wave 5 (orange) and built an ABC (blue) correction as expected yesterday. A bounce at the support trend line (green) could complete wave C (blue) whereas a break above resistance (red) could see wave 5 continue. Currency pair GBPUSD The GBP/USD is building a WXY (blue) correction within wave 4 (green). Once wave 4 (green) is completed, a downtrend continuation is expected to push below support for wave 5 (blue/purple). The GBP/USD continued higher yesterday which could either mark complete wave c (grey) or wave 3 (purple), which will partly depend on how price responds in this potential wave 4 (purple). A bull flag chart pattern that stays above the 50% Fibonacci level increases the chance of a wave 4. The wave 5 could be short as price reaches the Fibonacci targets. A bearish correction could take place as the market awaits the US Presidential Election next week Tuesday. Currency pair USD/JPY The USD/JPY seems to be building a first bounce at the Fibonacci levels of wave 4 vs 3 (blue). A break above resistance (red) could confirm the breakout for wave 5 (blue). The USD/JPY seems to building a wave 12 (brown) and could be starting the wave 3 (brown). A bull flag pattern would increase chances of continuation. |
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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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