EUR/USD break or bounce decision at Fibonacci support zone 2016.10.20

EUR/USD

4 hour

The EUR/USD is challenging support levels but needs to break below the 138.2% Fibonacci level of wave X vs W at 1.0940 before a larger correction within wave B (blue) is invalidated and a new downtrend should start. If price does bounce at the support Fibonacci levels of wave X (green), then a rally could occur towards wave Y (green) of wave B (blue).

1 hour

A bullish ABC (green) could occur if price manages to break above the resistance trend line (orange). In such a case, the Fibonacci levels of wave B (blue) are expected to act as resistance.

GBP/USD

4 hour

The GBP/USD continues to build a triangle formation within the wave 4 (green) correction and the Fib levels are expected to act as resistance.

1 hour

The GBP/USD has either completed wave 5 (grey) or still is moving sideways within wave 4 (grey), which depends on the breakout direction above or below support (green) or resistance (red) trend lines.

USD/JPY

4 hour

The USD/JPY needs to break above the previous of wave 1 (purple) before a larger uptrend (wave 3 purple) can start. As long as price stays above the 50% Fibonacci level of wave 4 vs 3, then a wave 4 (blue) seems to be the most likely wave structure.

1 hour

The USD/JPY has expanded the correction of wave 4 (blue). A break above resistance (red/orange) is needed before price can build wave 3 (brown) and continue with the uptrend.

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