Honey, I Shrunk The Euro

Ville Vainio

EUR/USD had a massive decline at the end of the week and the bears seems to be in charge here. The decline went trough the support area around 1.1145 and kept going. This decline is in line with the wave count which has been expecting powerful decline for some time now. Although this decline is still a 3 wave structure, the larger wave structure is supporting the view that we have started the next phase in dollar strength.

EURUSD 4 Hour Chart

USD/JPY has advanced from the 118.06 low which is in line with the wave count . My preferred wave count is expecting this advance to be minute wave (Y) to the upside. Minute wave (Y) should unfold in 3 waves A-B-C.

USDJPY 4 Hour Chart

GBP/USD Strengthening US dollar has caused GBP/USD to decline. My preferred wave count is supporting the view of larger decline and more downside. 1.51 is the next larger target and junction point for the view that larger bearish move is underway.

GBP/USD 4 Hour Chart

EUR/GBP is on a bearish path and my preferred wave is looking this as the start of much larger decline. We are still seeing a 3 wave structure but come next week I believe this structure is going to form as 5 wave structure. The recent high according to my wave count is intermediate degree wave B peak and is proposing lot more downside on this pair.

EUR/GBP 4 Hour Chart

Source: forexdaybreak.com