GBPUSD, USDJPY moving quickly in wave C momentum 2016.05.27
EUR/USD
4 hour
The EUR/USD broke the resistance trend line (dotted red) of the downtrend channel. This bullish break is most likely a corrective wave 4 of a lower degree (see 1 hour chart). The 123 (purple) becomes more likely than an ABC if price manages to extend beyond the 161.8% Fibonacci target.
1 hour
The EUR/USD showed choppy and corrective price action yesterday. Price completed an ABC zigzag as expected and could now be expanding the correction. A break above the 50% Fibonacci retracement level of "4 vs 3" would make a wave 4 (green) less likely. A break below the support trend line (green) increases the chance of a bearish breakout for wave 5 (green).
GBP/USD
4 hour
The GBP/USD bullish breakout failed to break the horizontal resistance (red). The broken resistance (dotted red) has now turned into a potential support level in the development of wave C (pink).
1 hour
The GBP/USD is in wave 4 retracement as long as price stays above the 61.8% Fibonacci level. A more likely bouncing spot is the 38.2% Fib which has confluence with the broken trend line (dotted red), the previous top of wave 3 (grey) and wave A (pink).
USD/JPY
4 hour
The USD/JPY is building a contracting triangle chart pattern (red/green). A break of support (green) would confirm the development of wave 2 (purple) correction. A breakout above the resistance (red) would indicate an expansion of wave 5 (blue).
1 hour
The USD/JPY completed 5 bullish waves within wave 5 (blue). The 5th wave did not break the previous top which is called a "truncated" 5th wave unless price manages to break above resistance (red). A break below support (green) confirms the bearish breakout for wave C (blue) and 2 (purple).
Follow @ChrisSvorcik on twitter for latest market updates