EURUSD & GBPUSD Break Above & Below Bull Flag 2015.12.09

EUR/USD

4 hour

The EUR/USD bounced at the 38.2% Fibonacci level. which acted as support and provided a bullish bounce. A bullish rally would confirm the development of an ABC rally (brown).

1 hour

The EUR/USD broke above the bull flag (dotted purple) but price action has been slow and choppy so far. Price will need to break above the current resistance (orange) before a bigger impulse could occur. A break below support (green) could indicate the chance of a larger bearish correction to the 50% Fibonacci level.

GBP/USD

4 hour

The GBP/USD bullish momentum (wave A) increases the chance of a larger ABC (green) zigzag correction, which could see support at the 78.6% Fibonacci level and resistance at the wave 4 (pink) Fib levels.

1 hour

The GBP/USD made a bearish break below the bull flag (dotted purple). Price fell towards the 78.6% Fibonacci level of wave B (green) and then bounced at this support level. A break above the resistance (orange/red) confirms the completion of wave B (green). A break below the support line (green) could see price make small drops towards the 100% level.

USD/JPY

4 hour

The USD/JPY bounced at the resistance (red) zone of the consolidation range (red/green). Price is now half way the range could fall to the bottom to complete the correction. A break of the zone is needed before a larger move can be expected.

1 hour

The USD/JPY seems to be completing a bearish ABC (orange) zigzag within the consolidation zone.