Pullback to Fibonacci levels expected after impulsive USD breakouts 2016.08.29

EUR/USD

4 hour

The EUR/USD respected the resistance trend line (red) and broke various support levels (dotted greens) on Friday. The bearish price action fits within the wave XY (brown) correction of wave D (green). A bullish bounce at the 50% or 61.8% Fibonacci levels of wave D vs B could complete wave D. A break below these Fibs could change the wave to a bearish trend.

1 hour

The EUR/USD indeed completed a bullish ABC zigzag (blue) at the resistance (red) as indicated in Friday's edition. The subsequent bearish turn was accompanied with strong bearish momentum which has been marked as a wave A (blue). The Fibonacci levels of wave B vs A should act as resistance within the wave B (blue) retracement.

GBP/USD

4 hour

The GBP/USD bounced at the 78.6% Fibonacci retracement level of wave 2 vs 1 (pink) and the resistance top (red) of daily downtrend channel (red). A break above this resistance (red) and the 78.6% Fibonacci retracement level indicates that the wave count would change to a larger ABC correction within wave 4 (blue). A break of support (green) confirms the bearish mode.

1 hour

The GBP/USD could be starting a new bearish wave 1-2 (green) but this scenario is invalidated if price breaks above the 100% Fib.

USD/JPY

4 hour

The USD/JPY broke the resistance (dotted orange) of contracting triangle (orange/green) during Friday's trading. The bullish break could be part of larger correction in the downtrend (red line) or the start of a reversal (break above red). For the moment the substantial bullish momentum is indicating most likely a wave 3 (blue).

1 hour

The USD/JPY seems to be building an extension within wave 3 (blue) with more momentum and waves 3. The current wave 3 (light blue) could be near completion, which is when a wave 4 and 5 (light blue) is expected within wave 3 (brown).

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