US Dollar breakout to confirm or invalidate key levels 2016.10.03

EUR/USD

4 hour

Support and resistance (S&R) levels remain key. The EUR/USD remains in a contacting ABCDE triangle chart pattern (blue) 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 is building a smaller triangle indicated by the support (green) and resistance (orange) trend lines. A push higher is expected at the moment to complete the bullish ABC (green) but a break above pink invalidates the wave E (blue).

GBP/USD

4 hour

The GBP/USD could either be in a wave E (green) or wave 4 (pink). A break below support (blue) makes the pink wave count more likely whereas a break above resistance (red) makes the wave E (green) triangle more likely.

1 hour

The GBP/USD is behaving more correctively and a complex correction (WXY blue) is emerging.

USD/JPY

4 hour

The USD/JPY remains stuck between the resistance of the daily downtrend channel (red) and the support of the various bottoms (green) plus 88.6% Fibonacci level of wave 2 (purple). A break below the bottoms invalidates the bullish reversal, whereas a break above the bearish channel confirms the potential for a wave 3 (purple).

1 hour

The USD/JPY potential break above the resistance (red) trend line could spark the start of a wave 3 (brown/blue) bullish momentum. A push lower could still see price bounce at the 78.6% Fibonacci retracement level but a break below the 100% Fib invalidates the wave 1-2 (brown).

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