Welcome to this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts.
The EUR/USD uptrend is still in a bearish retracement as part of wave 4 (purple). A break below the support trend lines (green/blue) makes a wave 4 less likely whereas a bullish break above 1.25 and the resistance trend line (red) could see price continue higher towards the Fibonacci targets of wave 3 (pink).
The EUR/USD bullish breakout is building a wave 5 (light purple) within a larger wave A (red). That wave 5 could already be completed if price breaks below the support Fibs on the daily chart. Alternatively wave 5 can extend higher before completing wave A (red).
The EUR/USD bullish momentum is most likely building a 5th wave (purple) within a wave A (red), which is part of a larger bullish ABC (red).
The GBP/USD bounced at support trend lines (blue) of wave 4 (green) and is now testing the resistance trend line (red). A bullish break could indicate one more push higher within C (blue). Wave 5 could turn out to be a truncated wave 5 (double top).
The GBP/USD is probably in wave 4 (light purple) but a break above the resistance trend line (red) and bottom of wave 1 (light purple) invalidates the wave 4 pattern (light purple). A break below the support levels could indicate a downtrend within wave 5 (light purple).
The GBP/USD bearish breakout could see the continuation of the wave 5 (purple) whereas a bullish break above resistance (red) could indicate that the wave C has been completed at the bottom.
The USD/JPY broke below the previous support zone (dotted green) and the bullish bounce back to the broken support has indeed acted as a resistance zone.
The USD/JPY is expanding the bearish correction of wave Y (light purple) of wave B (red) after breaking below the support zone.
The USD/JPY could now fall towards the Fibonacci levels of wave Y (light purple).
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