EURUSD and GBPUSD: Both Looking at More Weakness
As you all know FED raised interest rates yesterday and USD is trading higher. For now, we still don’t know if the USD trend reversed but in the next few weeks we will have a clearer picture.
EURUSD is showing us a sharp and strong reversal lower from the highs, which we now see it as the first push lower as part of a minimum three wave decline. That said, current drop is displaying five waves, which means higher degree wave 1)/A) can see limited downside in the near-term. Once the mentioned wave 1)/A) finds a base, a new three wave recovery can be expected to follow into the following wave 2)/B), with possible resistance zone at previous swing high of wave 4- at 1.1228 level.
On GBPUSD we were observing a higher degree three wave A-B-C correction, which can be as of current intra-day weakness completed. If that is the case, then more weakness can be seen on the pair. We see some resistance regions being touched, which can also act as reversals and push price lower.
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