Comment: For anybody that is currency trading, trying to predict where prices are going in future with certainty is the ultimate goal. In reality all of the indicators in the world won’t be able to provide you any warranty that price will move in the direction that they indicate. The fact is, that whenever currency trading, we are dealing with probabilities. The best way to discover the utmost success is to gather as much technical and fundamental data together to produce your decision. Of course understanding what the experts perceives as within EUR/USD, GBP/USD Test Support And Resistance Trend Lines  may also give substance to the reasons for a position you take and thus we’re continuously looking  with the thoughts of specialist forex traders from brokers through to trading rooms.

Daily Forex Technicals | Written by Admiral Markets | Nov 30 16 07:09 GMT

Currency pair EUR/USD

The EUR/USD is building a contracting triangle pattern (orange/green) at the major support levels from the daily chart (green). A bullish break above resistance (orange) could see price correct to higher Fibonacci levels. A break below the support zone (green lines) indicates a continuation of the downtrend.

The EUR/USD seems to have completed another ABC zigzag (blue) within a larger WXY (brown/purple) correction. A bullish bounce at the Fibonacci levels could indicate that price will extend the correction in a wave Y (brown).

Currency pair GBPUSD

The GBP/USD has both support (green) and resistance (red) trend lines nearby. The Cable needs to break below the support trend line (green) to confirm a downtrend continuation within waves 5. A breakout above resistance (red) might soon run into new resistance at the Fibonacci levels of wave 2 vs 1.

The GBP/USD showed strong bullish momentum which could be part of a larger ABC (grey) zigzag. A break above resistance (red) could see price push to the 78.6% Fib of wave 2 vs 1. A break below the 100% of wave B vs A indicates a bearish breakout zone.

Currency pair USD/JPY

The USD/JPY is building a correction and is retracing within a wave 4 (blue) or is starting already the wave 5 (blue) continuation. The23.6% and 38.2% Fibonacci levels are expected to act as support if price does retrace deeper.

The USD/JPY bullish break above resistance (dotted orange) showed strong momentum and has been marked as a wave 1 (brown). Price could now be in a wave 3 (brown) unless price breaks below the 100% level of wave 2 vs 1.

 

About the Author

Admiral Markets

Notes

The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces.

One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective.

As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication.

The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions.

In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan – on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.

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