EUR/USD, GBP/USD move impulsively towards Fibonacci targets 2016.08.18

EUR/USD

4 hour

The EUR/USD is in a bullish momentum which is part of a larger contracting triangle chart pattern (ABCDE green).

1 hour

The EUR/USD showed a retracement back towards the 50% and 61.8% Fibonacci retracement level which completed wave 4 (orange). The wave 5 (orange) is heading towards the Fibonacci targets.

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). A break below the previous bottom (green) is needed before an extension of the downtrend is confirmed.

1 hour

The GBP/USD indeed completed a wave B (green) correction and is moving higher as part of the wave C (green). A break of the resistance trend line (orange) or retest and bounce at the support trend line (green) could lead to bullish continuation towards the Fibonacci targets.

USD/JPY

4 hour

The USD/JPY is struggling to break the horizontal support of the previous bottom (green). Price will either break the support for a downtrend continuation or break above the resistance and potentially start a reversal.

1 hour

The USD/JPY needs to break below the Fibonacci levels of wave X vs W before a continuation of the bearish momentum is expected. At the moment a bullish ABC zigzag (green) seems the most likely scenario.

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