Forex market waiting for momentum to unfold 2016.07.25

EUR/USD

4 hour

The EUR/USD broke the support trend line (green) and could therefore be starting wave 3 (purple). The breakout has been slow and mild so far and price needs to break below the wave 1 bottom support (green) before more confirmation is given.

1 hour

The EUR/USD breakout has been choppy and has been labelled as a leading diagonal wave 1, which has an overlapping 5 wave structure. A break above the 100% Fibonacci level of wave 2 (blue) invalidates the wave count.

GBP/USD

4 hour

The GBP/USD is still in a triangle chart pattern (green/red). Whether the Cable is bullish or bearish will depend on the direction of the breakout. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD is building a triangle (orange / green lines). A break below the support trend line is needed before a wave 3 (green) could be expected. A break above the 100% Fibonacci level invalidates wave 2 (green / blue). The Fibonacci levels should act as resistance.

USD/JPY

4 hour

The USD/JPY is respecting the resistance trend line (red) from the daily chart. If price breaks the smaller support trend line (green) a retest of the bigger support (blue) could occur. A break above resistance (red) indicates a potential long-term bullish breakout.

1 hour

The USD/JPY seems to be completing an ABC (grey) zigzag at the moment. A break above the 100% Fibonacci level decreases the likelihood of a wave B (grey).

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