EUR/USD Tests Key Resistance Zone for Bounce or Breakout

Kovas 26, 2018 10:37

EUR/USD

4 hour


The EUR/USD is testing the resistance trend line (red). A bullish break could start a potential wave 3 (blue) of 3 (purple) whereas a break below the support zone (green) could indicate a larger trend change.

1 hour

The EUR/USD could be building An ABC correction (green) within wave 2 (blue). A break above the trend line at 138.2% Fib increases the chance of a bullish breakout and the fact that wave 2 (blue) has been completed.

GBP/USD

4 hour

The GBP/USD is in a strong uptrend which is getting closer to testing the previous top (red). Price could now be building a wave 4 (green) retracement.

1 hour

The GBP/USD seems to have completed a wave 4 (green) retracement. A break below support (green) could expand the wave 4 correction whereas a break above 1.42 could indicate the start of wave 5 (green).

USD/JPY

4 hour


The USD/JPY downtrend is building a consolidation zone below the broken support.

1 hour

The USD/JPY could be building a descending wedge chart pattern. A break below support could indicate a bearish breakout whereas a bullish break would run into resistance at the broken support (dotted green).

Good trading,

Chris Svorcik

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