Wave analysis clarify extensive correction triangles in Forex 2016.07.29

EUR/USD

4 hour

The EUR/USD continues its long-term consolidation pattern by staying between support (green) and resistance (orange). A bearish breakout is needed before the wave count is confirmed whereas any move above the 100% Fib level invalidates wave 2 (purple).

1 hour

The EUR/USD is building a smaller triangle (red/green). Due to the strong momentum seen in wave A (green), it seems more likely that a wave B and C (green) will follow. A break below the 78.6% Fibonacci level increases the likelihood of wave Y (blue) completed at the recent top.

GBP/USD

4 hour

The GBP/USD seems to have found a temporary equilibrium and is building an extensive sideways movement. The triangle chart pattern (green/red) will need a breakout to decide whether the Cable is bullish or bearish. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD is building an ABC (grey) bullish zigzag. A break below the support trend lines (green) could indicate the end of the correction.

USD/JPY

4 hour

The USD/JPY is in a bearish correction and retracing back to Fibonacci levels of wave 'X vs W'.

1 hour

The USD/JPY showed a lot of volatility but was not able to break above the resistance (orange). It is now moving towards the Fibonacci targets.

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