EUR/USD: Still a fair chance wave 3 completed. T
The past three days price action has created a possible V-shaped bottom which together with 1) the arrival at the ideal target, 1.2905, for wave 3 and 2) Tuesday’s piercing pattern candle makes up for a possible base for a forthcoming wave 4 correction/consolidation. The hourly pattern is a bit messy this morning but we think buying a break above 1.2934 will be the way to play it.
GBP/USD: Gap fill underway.
After a couple of days struggling with the former triangle ceiling (now acting firm support) the market yesterday printed a bullish key day reversal confirming that the sought weekend gap fill of the 1.6332 – 1.6270 gap now is underway (as elaborated on Monday a gap this late in a down phase cannot be a breakaway gap hence it must be a continuation gap and those should always be filled). So short term more strength.
USD/JPY: Rise in its terminal stage.
The adjusted wave count (that was necessary breaking above 105.45) calls for the market to end the rising wedge/circled wave 5 at 107.37 (target rises with approximately one pip a day). Given being probably the most crowded trade it will probably be wise to take some money off the table at any sign of weakness.
AUD/NZD: Buyers responded at dynamic support.
The Fibo-adjusted 21day "Kijun-Sen" is ascending still but is currently paused, indicating a trending market likely to move back to its equilibrium – and so it did. A bullish candle today/sustained violation of local resistance at 1.1225 would bring back the recent high of 1.1295 back in focus, but sellers should also get tempted by such opportunity, so a best guess is up-before-down. The nearest key-level on south is placed at 1.1055.
