EUR/USD’s Bullish Channel versus GBP/USD’s Bearish Channel 2015.12.23
EUR/USD
4 hour
The EUR/USD is in an uptrend channel (purple lines) and is climbing towards the targets of wave Y (brown). If price breaks below the channel, then there could be a larger correction of wave X (brown) which could take price down to the next support Fibonacci levels of wave X (brwn) such as 61.8% or 78.6%.
1 hour
The EUR/USD broke above the 2nd resistance trend line (dotted orange) and made one more bullish push as part of wave 3 (blue). Price seems to be in a wave 4 (blue) now, which typically sees support at the 23.6% and 38.2% Fibonacci levels. In this case, the 38.2% Fib also corresponds to the bottom of the channel and the previous wave 4 (green). A break below the channel and 50% Fib will most likely change the wave count to an ABC.
GBP/USD
4 hour
The GBP/USD is approaching the bottom of the downtrend channel (green), which is an area where price can build a bullish bounce or post a bearish break for an impulsive acceleration.
1 hour
The GBP/USD broke a 2nd support trend line (dotted light green) and showed a bearish fall as part of wave 5 (green). Within wave 5 (green) there seems to be a 5 wave extension (blue). A break above the 61.8% Fibonacci retracement level invalidates the wave 4 (blue).
USD/JPY
4 hour
The USD/JPY remains in a consolidation territory as long as price stays in between support and resistance (red/blue).
1 hour
The USD/JPY seems to be building an ending diagonal (pink) for the 5th wave. A break above the resistance trend line (orange) could see price complete wave A (blue) and retrace versus the Fibonacci levels of wave B (blue).