All Major Forex Pairs Show Large Price Swings 2016.01.08

EUR/USD

4 hour

The EUR/USD bullish bounce continued all the way to the resistance trend line (orange), which caused price to make a bearish bounce. The bullish rally could be part of larger wave A (purple), which is confirmed with a break of resistance. A break of support (green) could see price fall towards the 78.6% Fibonacci level.

1 hour

The EUR/USD is building a potential 5 wave structure (blue). The 5 wave development is invalidated if price breaks below the top of wave 1 (green line). A bounce at the wave 4 Fibs could see price rally for a wave 5.

GBP/USD

4 hour

The GBP/USD broke below the downtrend channel and the daily bottom but made a bullish retracement near the 1.45 round number. The bearishness seems to be part of wave 5 (blue).

1 hour

Within wave 5 (blue) the GBP/USD seems to have completed 5 bearish waves (green/pink). The downtrend could expand with for instance the waves 5 leading towards a larger wave 1 (purple). For the moment a bullish momentum is visible, which could lead towards an ABC (pink) correction within potential wave 2 (purple).

USD/JPY

4 hour

The USD/JPY downtrend remains strong as long as price remains below the resistance trend line (orange).

1 hour

The USD/JPY seems to have completed a wave 5 (pink) within wave 3 (green) and is now building a corrective wave 4 (green). The correction is unfolding via an ABC (pink) correction.