US Dollar Builds Corrective Patterns And Offers Breakout Setups
EUR/USD
4 hour
The EUR/USD is testing the support zone at 1.17 again. A break below this zone (blue) will probably indicate a larger correction within wave 4 (light purple). A break above resistance would confirm a bullish breakout within wave C of wave X (pink).
1 hour
The EUR/USD could be building a wave 1-2 (green) if price stays above the 100% Fibonacci level of wave 2 vs 1.
GBP/USD
4 hour
The GBP/USD needs to break above resistance (red) before a larger wave C (orange) can take place. A break below support (blue) indicates a potential bearish breakout.
1 hour
The GBP/USD could be in a wave 1-2 (brown) if price stays above the 100% Fibonacci level.
USD/JPY
4 hour
The USD/JPY bullish momentum could take it higher towards 114.50-115.
1 hour
The USD/JPY retraced within a wave 4 (green) towards the 50% Fibonacci level which provided support. A break above resistance (red) could confirm the wave 5 (green) breakout.
Disclaimer: Trading foreign exchange or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. There is a possibility that you may sustain a ...
more
Agreed, I think the dollar will break out to the upside unless a major deficit creating tax break is pushed through. Then we will see where the economy goes with or without the tax break.