EUR/USD completes 5 bearish waves and prepares for zigzag 2016.11.11

EUR/USD

4 hour

The EUR/USD bearishness has been very impulsive and has been labelled as a wave 1 (green). The wave e (green), however, is quite short in its current form and therefore an alternative but possible scenario is that the wave 1 (green) is still part of a larger correction. The wave 1 (green) would certainly be invalidated if price manages to break above the top (red) and 61.8% of wave E vs D.

1 hour

The EUR/USD wave 1 (green) seems to be completed as several 4 hour candles become bullish. That translates into a small but visible rally on the 1 hour chart which could be the start of a wave a (brown). After the wave a (brown) is completed, then a wave b (brown) retracement and a wave c (brown) continuation is expected. A break below the bottom could see wave 5 extend further.

GBP/USD

4 hour

The GBP/USD is building a strong bullish retracement. The Fibonacci levels could be targets and resistance spots as price develops a WXY (blue) correction within wave 4 (green). Once wave 4 (green) is completed, a downtrend continuation is expected to push below support for wave 5 (blue/purple).

1 hour

The GBP/USD finally broke above resistance (dotted red) with momentum (wave 3 purple) and seems to be building a wave 4 (purple) retracement for 1 more push higher within wave C (grey).

USD/JPY

4 hour

The USD/JPY showed a strong bullish reaction earlier this week and has been labelled a wave 1 (purple).

1 hour

The USD/JPY is building a series of 5 waves (blue) within wave 1 (purple). The wave 5 (blue) is being extended with a 5 wave (brown).

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