Weekly Wave Analysis EUR/USD, GBP/USD, USD/JPY 21 May 2018

Květen 21, 2018 12:08

Hello trader,

Please find here below this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts. More education, analytics, articles, and webinars can be found daily on Admiral Markets. https://admiralmarkets.com/analytics/

EUR/USD

The EUR/USD made a bearish bounce at the Fibonacci resistance levels of wave 4 (purple) and continued within the downtrend. The lower low is probably a wave 5 (purple) which in turn could complete wave 3 (pink). Whether the wave 5 is finished at this moment remains unclear and price could extend the wave 3 to a new lower low. A break above the previous high however could indicate a larger retracement, probably within wave 4 (pink).

Daily chart:


The EUR/USD seems to have completed the 5th (purple) wave within wave A (red) and price is now building a bearish ABC (purple) correction within wave B (red).

Weekly chart:

The EUR/USD has probably completed wave A (red) and price is now retracing back to the Fibonacci levels of wave B (red).

Monthly chart:

GBP/USD

The GBP/USD downtrend is becoming slower and choppier. The downtrend could still continue with a one more lower low within wave 5 (purple) of wave 1 (pink) and aim for the support zone around 1.3380-1.34 before a bullish retracement could occur within wave 2 (pink).

Daily chart:

The GBP/USD has probably started the bearish wave 5 after price has completed a wave 4 (light purple) correction.

Weekly chart:

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.

Monthly chart:

USD/JPY

The USD/JPY broke above the 38.2% Fibonacci resistance level, which could indicate a bullish breakout towards the 50% Fib at 111.80.

Daily chart:

The USD/JPY could be building an ABCDE triangle (light purple) within wave B (red).

Weekly chart:

The USD/JPY could now rise towards the Fibonacci levels of wave D (light purple).

Monthly chart:

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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.