GBP/USD, USD/JPY move quickly in powerful momentum swings 2016.10.06

EUR/USD

4 hour

The EUR/USD is showing multiple impulses up and down and all together they form a larger consolidation zone (green and red trend lines). An ABCDE triangle chart pattern (blue) is most likely unfolding within wave X (purple) unless price breaks above the invalidation level (pink). A break below support (green) indicates that a wave Y (brown) is most likely starting within wave d (green).

1 hour

The EUR/USD retraced back to the 50% Fibonacci level of wave B (green) but price could retest lower Fibonacci levels before completing potential wave C (green). A break below the 100% Fibonacci level of wave B vs A invalidates the bullish ABC (green) whereas a break above the resistance (pink) invalidates wave X (purple).

GBP/USD

4 hour

The GBP/USD is building a (light) retracement within a strong bearish impulse, which has broken previous bottoms and lows of earlier this year. A break of the support (green) could price extend the decline towards the Fibonacci targets (red arrows).

1 hour

The GBP/USD seems to have completed 5 waves (grey/orange) within wave 3 (blue). A wave 4 retracement (blue) should see price respect and turn at the shallower Fibonacci levels like 23.6% and 38.2% Fib. A break below the bottom should build a small bear flag (orange arrow) emerge before dropping to the Fibonacci targets, or else the break could still be part of a larger wave 4 (blue) correction.

USD/JPY

4 hour

The USD/JPY broke above the resistance of the daily downtrend channel (dotted red) and a wave 3 seems to be developing (purple).

1 hour

The USD/JPY is showing strong bullish momentum, potentially as part of multiple wave 3's. The current wave 3 (brown) could still push higher if price is able to break above the top and 200% Fibonacci target (blue arrow). If a retracement does occur, then the wave 4 (brown) usually turns at the 23.6% or 38.2% Fibonacci level (green arrows).

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