ABC zigzag corrections persist in Forex market 2016.07.28

EUR/USD

4 hour

The EUR/USD broke above the resistance trend line (red) and the wave 1 (purple) has therefore been moved to the recent bottom. A break above the next resistance (orange) and 100% Fibonacci level would confirm a larger correction within wave 2 (brown). A breakout below support (purple/green) would however make a wave 3 (purple) more likely again.

1 hour

The EUR/USD is showing bullish momentum which is most likely part of an ABC zigzag (green).

GBP/USD

4 hour

The GBP/USD is still in a triangle chart pattern (green/red). Whether the Cable is bullish or bearish will depend on the direction of the breakout. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD broke above the resistance trend lines (orange/red) to enlarge the corrective zone. The Cable could be building multiple waves 1-2 but an impulsive breakout below support (green) is needed before this can be confirmed. A break above the 100% Fib level invalidates wave 2 (blue).

USD/JPY

4 hour

The USD/JPY is in a bearish correction. A break below the 38.2% Fibonacci level should lead to a bearish fall to the 50% or 61.8% Fibonacci level of wave 'X vs W'.

1 hour

Whether the USD/JPY is in a wave B (blue) or wave X (brown) remains to be seen and depends whether price will respect and bounce at the 78.6% Fibonacci level or break below the 100%.

Follow @ChrisSvorcik on twitter for latest market updates