EU & GU Break Long-term Support Trend Lines 2015.09.23

EUR/USD

4 hour

The EUR/USD broke the support trend line (dotted green) most likely as part of a wave 1 (brown). The bearish price action is probably part of a bigger wave 3 or C (green). A wave 3 would certainly need to break below the bigger weekly support zone (solid green).

1 hour

The EUR/USD completed 5 bearish waves (blue) as part of a large wave 3 (purple) and made one more bearish push yesterday. Wave 5 could still push a bit lower but a retracement is likely with divergence present between the recent bottoms. Price could go back to the level of the previous wave 4 at around 1.120 and later to the long-term moving average at 1.1250.

GBP/USD

4 hour

The GBP/USD also broke the support trend line (dotted green) and the wave 3 (orange) could continue to lower Fibonacci levels.

1 hour

The bearish momentum is clearly visible in the recent trading days. The exact bearish count could still change depending whether price bounces up or breaks lower at the 100% Fib level.

USD/JPY

4 hour

The USD/JPY is in a contacting triangle chart pattern (red and blue trend lines). The completion of the wave E (purple) is confirmed when price pushes below the support trend line.

1 hour

On the lower time frames price is potentially making 2 deep pullbacks in a row as part of a wave 1-2 start. The alternative is that price is still in the wave E (purple) correction.