EUR/USD, GBP/USD in waves 4 marked by trend lines 2016.08.22

EUR/USD

4 hour

The EUR/USD has made a bearish retracement back to the 38.2% Fibonacci retracement level as expected. The Fibonacci levels could provide support as part of a wave 4 (green). A break below the 61.8% Fibonacci level would invalidate the wave 4 (green) structure.

1 hour

The EUR/USD has arrived at a spot where it could complete a bullish bounce at the Fib levels or bearish break through the support trend line (green). A bullish break above resistance (red) could indicate the start of wave 5 (green).

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). The Cable turned at the 61.8% Fibonacci level of wave 2 vs 1 and broke below the support trend line (dotted green), which could mark the start of wave 3 (pink) if price manages to break the previous bottom (green). A break above the 100% Fib level invalidates the pink 1-2.

1 hour

The GBP/USD completed 5 waves (blue) within a wave C (green) zigzag. The Cable is now showing bearish momentum (wave 3 blue) and a triangle (trend lines). A break below the support trend line could start wave 5 (blue) whereas a break above the 61.8% Fibonacci level of wave 4 (blue) invalidates it.

USD/JPY

4 hour

The USD/JPY will either break the support (green) for a downtrend continuation or break above the resistance (red) and potentially start a reversal. Bullish momentum seems likely at the moment after the break above the first resistance trend line (dotted orange).

1 hour

The USD/JPY is in a channel (orange/green). A break below the channel could indicate a downtrend continuation and invalidate the current wave structure. A break above the channel could confirm the development of a wave 3 (brown/blue).

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