ABC Correction Pushes EURUSD Towards 50% Fib 2015.09.25

EUR/USD

4 hour

The EUR/USD saw a bullish retracement yesterday as part of wave 2 (brown). Price stalled at the 50% Fibonacci retracement level.

1 hour

The EUR/USD completed a bullish ABC correction but the pair is showing the potential for a bearish ABC correction (blue) as well. If price does bounce at support, then an enlarged wave 2 correction could take place that takes price up to the next Fib resistance (61.8%-78.6%). A break below support increases the chance of the start of wave 3.

GBP/USD

4 hour

The GBP/USD is in a bearish breakout and has made one more fall yesterday as part of wave 3 (pink).

1 hour

Yesterday's bearish move seems to be part of a wave 5 (blue) and price could now be in a wave 4 (pink). A break of support could indicate an extension of the wave 3 whereas the trend lines (purple, red, orange) could act as resistance of wave 4.

USD/JPY

4 hour

The USD/JPY bounced at the support trend line (blue) as part of the wav X (blue) and is now approaching resistance levels of wave E (purple). A break above the purple trend line is needed before the current wave E variant is invalidated.

1 hour

Yesterday's drop and rise can be explained by a bearish wave C (orange) and a bullish wave A (green).