EUR/USD Reaches Key POC Zone: Bearish Pullback or Bullish Trend

August 08, 2017 05:30

EUR/USD

4 hour

The bearish EUR/USD daily candle on Friday did have a bearish impact on Monday's price action and price is moving higher. There are, however, strong resistance trend lines (red/orange) present at 1.1825, which offers point of confluence (POC) that could turn price back down. The uptrend could still be alive if price manages to break above this POC zone and the previous top at 1.19.

1 hour

The EUR/USD could be building an ABC (orange) correction within wave 4 (brown). The bearish breakout below support (green) could indicate a wave 5 (brown) continuation to complete wave A (purple). The wave 4 is invalidated if price breaks above the 61.8% Fib and resistance line (red).

USD/JPY

4 hour

The USD/JPY is building an ABC (orange) zigzag within a larger ABC correction (brown).

1 hour

The USD/JPY is probably in a wave 4 (purple) as long as price stays above the top of wave 1 at 110.25. A more likely turning spot could be the 50% Fibonacci level of wave 4 vs 3.

GBP/USD

4 hour

The GBP/USD could be in a bearish breakout via a wave 1-2 (red) after the Cable broke below the support trend line (dotted blue).

1 hour

The GBP/USD seems to have completed 5 waves (purple) within wave 1 (red) and is now building a potential ABC (purple) within 2 (red).

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