|Forex Technical Analysis: EUR, GDP & JPY
The EUR/USD was unable to break above resistance (Red) and is correcting lower as part of a wave X (Lavender) unless price manages to break below the main support mark (Green).
The EUR/USD broke below the support trend line (Green) as part of an impulse, which most likely is an ABC ZigZag formation (Blue).
The GBP/USD continued its rally Wednesday and turned at the confluence of the 61.8% Fibo target and resistance trend line (Red).
Wednesday’s ABC (Dark Green) probably completed the wave W (Orange) and the retracement could be part of the Wave X (Orange).
The USD/JPY is in a Bullish breakout but the strong resistance (Red) mark could stop price as part of a Wave X (Lavender). The wave count remains labeled a WXY (Blue/Lavender) unless price manages to break above the resistance.
The USD/JPY broke above the resistance trend line (Red) but the angle of the break is shallower than the price action movement prior, which confirms the corrective price action. The Wave count would probably change if price breaks above the 100%-161.8% Fibo marks.
After finding a trading system that works for you, the more cryptic and esoteric fields of study can then be incorporated into your technical and trading toolbox.The bottom line when utilizing any type of analytical method,technical or otherwise, is to hold to the basics, which are methodologies with a proven track record over a long period.
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technical trader.