Respected Trend Lines Mark the Edge of Contracting Triangles 2016.01.15

EUR/USD

4 hour

The EUR/USD showed a bearish bounce at the resistance trend line (orange) of the larger contracting triangle, which has been marked as multiple corrective waves.

1 hour

The EUR/USD also bounced at the support trend line (green), which could be part of an ABC (blue). A break below the support trend line and bottom of wave X (purple) invalidates the wave count.

GBP/USD

4 hour

The GBP/USD is building a large sideways correction within a large downtrend channel.

1 hour

The contracting triangle is marked by support (green) and resistance (red/orange) levels.

USD/JPY

4 hour

The USD/JPY is near the daily support levels (blue), which could cause price to show a bullish bounce. At the moment the wave count is showing the potential for a lower high as wave W (brown) and a higher low as wave X (brown).

1 hour

The USD/JPY is building a large sideways correction which is marked by support (green) and resistance (orange).