Volatility spike in the Forex market 2016.01.29
EUR/USD
4 hour
The EUR/USD is building a contracting triangle chart pattern. Price bounced yet again at the top of the triangle. It could find support again near the bottom of the triangle or at the Fibonacci levels.
1 hour
The EUR/USD has made a bearish turn at the resistance level (red). It is now building a bearish ABC zigzag within the corrective pattern (4 hour chart) that is bringing price back to the Fibonacci levels of wave X (blue). A break below the 100% level invalidates the wave structure.
GBP/USD
4 hour
The GBP/USD keeps correcting the downtrend via a WXY (green) as part of a larger wave 4 (purple). Price is now approaching the 1st Fibonacci level at the 23.6%. Typically wave 4s retrace to the 38.2% with the 23.6% and the 50% as alternative stopping spots.
1 hour
The GBP/USD bounced at the support trend line (green) to complete wave B (blue) as indicated in an earlier wave edition. Price has gained yet another bullish momentum as it breaks above the resistance trend line (dotted orange).
USD/JPY
4 hour
The USD/JPY broke the resistance trend line (dotted red) and showed a large bullish momentum to the 61.8% resistance Fib. The bullish price action could still be considered part of an impulsive wave C (blue). The wave count is vulnerable to change if price breaks above resistance (red) or if it shows a bullish correction pattern in the near future.
1 hour
The USD/JPY impulse has been labeled a wave 3 (pink) within the wave C (green). A break below the support trend line (green) invalidates the wave 3-4 development.
Know more about widened spreads and price gaps protection features.