Daily Wave Analysis for 18 March 2014 2014.03.18

EURUSD

Wave Y’s (blue and brown) seem to be complete and therefore the EURUSD retracement could become relatively deep (green Fib). However if price breaks above the current wave Y (magenta) top, then it will change to a wave W.

4 hour chart EURUSD:

The retracement down was quite impulsive and has a decent chance of being a wave A (orange), which indicates a potential wave B and C still remaining. The trend is up (blue channel) so break out trades could occur to both directions (red and green arrows).

60 min chart EURUSD:

GBPUSD

Yesterday’s relatively fast drop in price is suggesting that the wave count is vulnerable for change. For instance, the correction of wave Y (blue) could be deeper.

4 hour chart GBPUSD:

As expected the pair made an ABC (red) within the triangle lines (blue). For the triangle lines (blue) can provide information when the GU might be breaking out (green and red arrows).

60 min chart GBPUSD:

USDJPY

A potential wave 123 (orange) seems to be developing, although price is close to a support level (dark green horizontal level).

4 hour chart USDJPY:

A potential wave 45 (orange/red) breakout (red arrow) seems likely at the moment as long as price stays below the resistance trend line (brown).

60 min chart USDJPY: