Major currency pairs boost sturdy momentum after breakout 2016.08.17

EUR/USD

4 hour

The EUR/USD broke the resistance trend line (dotted) as expected in yesterday's wave analysis. The bullish move is part of a larger contracting triangle chart pattern (ABCDE green).

1 hour

The EUR/USD broke the resistance (dotted) with strong momentum, which could indicate that it was a wave 3 (orange). In that case a wave 4 and 5 (orange) could unfold soon. The wave 4 (orange) structure is invalidated if price moves below the 78.6% Fibonacci level of wave 4 vs 3.

GBP/USD

4 hour

The GBP/USD is either completing a wave 5 (blue) or extending the wave 5 (blue) with an internal 5 wave indicated by wave 1-2 (pink). A break below the previous bottom (green) is needed before an extension of the downtrend is confirmed.

1 hour

The GBP/USD broke the resistance (dotted ) trend line of the bearish channel with strong bullish momentum, which makes it likely that a bullish ABC zigzag (green) is taking place. If the wave A (green) has completed, then price could use the Fibonacci levels of wave B (green) as a potential support.

USD/JPY

4 hour

The USD/JPY has broken the support tend lines (dotted greens), but still needs to break below the previous bottom before a larger bearish continuation can be expected towards the 61.8% Fibonacci retracement level of wave B vs A.

1 hour

The USD/JPY has shown a strong bearish breakout as part of a wave 3 (pink) but the bullish correction has retraced all the way to the 61.8% Fibonacci level of wave 4 vs 3. A break above the 78.6% Fibonacci level invalidates the current wave structure. A break below the support trend line could start wave 3 (green).

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