Daily Wave Analysis for 27 August 2014 2014.08.27

4 hour EURUSD:

Price has reached the minimum wave 3 (orange) target (100%) – although usually wave 3’s tend to get lower such as the 161.8% Fibonacci target (green).

60 min EURUSD:

Yesterday price managed to break the bear flag (blue lines)  to the downside. If price does make a retracement then it could be for a wave 4 and 5 (magenta).

GBPUSD

4 hour GBPUSD:

A 5-wave structure seems to be complete, which means a retracement of that swing high and swing low could occur.

60 min GBPUSD:

If the downtrend does continue, then wave count will get extended and wave 3 (dark red) will become wave 1 of a lower degree (but price cannot cross above red line).

USDJPY

4 hour USDJPY:

Wave 3 (blue) has not managed to pull away from wave 1 (blue), which means that a corrective count could still be very likely. The break of the resistance (red) has been short lived so far.

60 min USDJPY:

The magenta line represents the top of wave 1 (green) and is the invalidation level of the current wave 12345 count.