US Dollar builds bullish wave-1 and slowly starts wave-2 2016.11.16

EUR/USD

4 hour

The EUR/USD has been marked as completing a wave 1 (green) of a larger wave 5 downtrend (blue). Price is now retesting the bottom of that wave 1: a bounce could start the wave 2 (green) correction whereas a break could see wave 1 extend towards the major support trend lines (green) from the daily chart bottoms.

1 hour

The EUR/USD could start an ABC zigzag (brown) correction within wave 2 (green) if price manages to break above resistance (red). The wave 2 (green) is invalidated if price breaks above the 100% Fibonacci level. A break below the wave 5 (brown) bottom could see price extend towards the Fib targets of wave 5 vs 1+3.

GBP/USD

4 hour

The GBP/USD seems to be developing a bearish wave 1 and 2 (blue), which could indicate that a wave 4 (green) retracement has been completed. A downtrend continuation is possible if price pushes below support (green) for a wave 5 (green/blue/purple) whereas the wave 2 (blue) is invalidated once price breaks above the 100% Fib level.

1 hour

The GBP/USD seems to be in a bullish zigzag (orange) within wave 2 (blue), which would be invalidated if price breaks above the 100% Fibonacci level. A break below the 100% Fib of wave B vs A (green) could see price extend wave 1 (blue) to a lower spot.

USD/JPY

4 hour

The USD/JPY is displaying strong bullish momentum, which has been labelled as a wave 1 (purple).

1 hour

The USD/JPY is building a bullish extension within the wave 1 (purple). The wave 4 (light blue) saw indeed a light retracement as expected and price has extended wave 5 (blue) with an internal wave (pink). A break of support could indicate that the uptrend is making a retracement or correction within the uptrend.

Follow @ChrisSvorcik on twitter for latest market updates