EUR/USD Awaits Bearish Pullback And Bullish Bounce At 1.2250

EUR/USD

4 hour

The EUR/USD bullish breakout above resistance (orange/red) could restart the old uptrend whereas a bearish break below support makes a wave 4 (pink) less likely and a downtrend more probable.

1 hour

The EUR/USD seems to have completed 5 bullish waves (blue) which could be a wave 1 (purple). The alternative is a wave A-B rather than 1-2. Price cannot break below the 100% Fib level otherwise it would invalidate the wave 2.

GBP/USD

4 hour

The GBP/USD is testing the support at the 61.8% Fibonacci level, which is a new bounce or break spot. A bearish break and close below 1.37 and the support line (blue) makes the wave 4 (green) pattern less likely.

1 hour

The GBP/USD could be in a wave 4 (blue), unless price breaks above the bottom of the wave 1 (red line).

USD/JPY

4 hour

The USD/JPY made a new lower low as part of a wave 5 (blue) pattern and has now reached a key support at the 105 round level.

1 hour

On the lower 1 hour time frame, the USD/JPY could be building a bullish wave 4 (green) correction, which could indicate the potential for one more bearish wave 5 (green).