EUR/USD, GBP/USD bullish bounce spots for waves B and 5 2016.09.06

EUR/USD

4 hour

The EUR/USD is respecting support (green) and resistance (red) trend lines. The current wave count is expecting price to show a bearish break towards complete an ABC (blue) zigzag within wave D (green). A break above the trend lines (red) would invalidate this scenario.

1 hour

The EUR/USD could bounce at the support trend line (green) to complete a wave B (blue) of a larger ABC zigzag. A break above the trend line (red) and 100% Fibonacci level invalidate the wave structure. A bearish candlestick pattern at the Fibonacci levels could confirm a turn.

GBP/USD

4 hour

The GBP/USD is in a bullish channel after breaking above an important resistance (red) trend line from the daily chart. The Cable is completing a larger ABC correction (pink) within wave 4 (blue).

1 hour

The GBP/USD is still within wave 4 (blue) after completing an ABC correction (purple). A break below the channel could still price respect support at the Fibonacci levels of wave 4 (blue).

USD/JPY

4 hour

The USD/JPY completed 5 waves (blue) at a strong resistance trend line (red) of the daily downtrend channel. An ABC (blue) zigzag is most likely taking place within wave 2 (purple). Also a head and shoulders reversal pattern (3 purple circles) seems to be unfolding at resistance (red).

1 hour

The USD/JPY break of support (green) could confirm the retracement within wave 2 (purple). A break above resistance trend lines (red/orange) could extend wave 1 (purple) to a higher high.

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