Wave Structure Prior to FOMC and US Rate Decision 2015.12.16
EUR/USD
4 hour
The EUR/USD was not able to break above the strong resistance level (red), which therefore has not yet invalidated the potential for a wave 2 and 3 (green). Today's interest rate decision in the U.S. followed by an FOMC statement will have a potentially large impact on all markets.
1 hour
The EUR/USD completed a 5th wave (blue) within an ending diagonal. After that price reverted quickly and the EUR/USD seems to have built a first leg of momentum which could be either a wave 1 or A (purple).
GBP/USD
4 hour
The GBP/USD has reached an interesting bounce or break spot at the bottom of the upward slopping channel (green/orange lines). Today's interest rate decision in the U.S. followed by an FOMC statement will have a potentially large impact on all markets.
1 hour
The GBP/USD is broke below the support trend line (dotted green) and has now reached a new support level. A bounce at the trend line could be shallow if price is indeed in a wave 4 (grey). The invalidation level for the wave count is the bottom of wave 1 (grey) which is just above the 50% Fibonacci level. A break below the support (green) could see price fall further towards the wave 3 (blue) Fibonacci targets. The alternative scenario is an ABC correction instead of a wave 3 (blue), if price manages to break above the waves 2 (blue/grey) and resistance trend line (brown).
USD/JPY
4 hour
Today's interest rate decision in the U.S. followed by an FOMC statement will have a potentially large impact on all markets. The USD/JPY could be making a pullback for wave B (orange) but an alternative which has an ABC ending at the spot of current wave A (orange) is equally likely.
1 hour
The USD/JPY has started a bullish momentum which could be either a 123 (pink) as marked in the chart or an ABC.