EUR/USD, GBP/USD setup ABC corrections within wave 4 pullback 2016.09.08

EUR/USD

4 hour

The EUR/USD is in a wave X (purple) unless it manages to break above resistance (red) and the top Fibonacci levels. In that case a bullish break within wave X (brown) is the most likely scenario. A bearish bounce at resistance (red/Fibs) could see the start of wave Y (brown) within wave D (green).

1 hour

The EUR/USD is moving sideways and staying above the 23.6% Fibonacci level of wave 4 (green) vs 3. A bullish break above resistance (orange) could see price move towards the 78.6% Fib level of wave X (purple) vs W. A break below the support trend line (green) could still price bounce at the 38.2% or 50% Fibs.

GBP/USD

4 hour

The GBP/USD is an ABC zigzag correction (green/pink) after the break of the daily resistance trend line (dotted red). The Fibonacci levels could be targets for the C waves.

1 hour

The GBP/USD made a retracement via an ABC zigzag (purple) to the 38.2% Fibonacci retracement level of wave 4 (blue) vs 3. A break above resistance (orange) could confirm the start of wave 5 (blue) with targets at the Fib levels. A break below support (green) could see price bounce at lowers Fibs of wave 4.

USD/JPY

4 hour

The USD/JPY is most likely completing a bearish ABC (blue) within wave 2 (purple), unless price breaks below the 100% Fibonacci level.

1 hour

The USD/JPY is building a channel (purple), which could indicate the start of a bullish bounce at the 61.8% Fibonacci level. The alternative is a bearish break, which could indicate one more bearish swing to the 78.6% Fibonacci level.

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