Weekly Wave Analysis EUR/USD, GBP/USD, USD/JPY 7 May 2018

Hello trader,

Please find below this week's wave analysis on the EUR/USD, GBP/USD and USD/JPY daily, weekly and monthly charts.

EUR/USD

The EUR/USD broke the key support zone and is building a bearish channel with a steep angle. But price needs to at least reach the 161.8% Fib target of wave 3 (purple) which is a minimum target for such a wave 3. At that point a wave 4 correction could take place.

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 bearish momentum is strong and is indicating a potential wave 1 (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 has bounced at the 38.2% Fibonacci resistance which most likely completed a wave W (pink).

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:

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.