EUR/USD and GBP/USD Build Bullish Momentum 2015.10.05

EUR/USD

4 hour

The EUR/USD bounced at the trend line (green) for a wave X (blue) and rallied during NFP up to the resistance trend line (red) and 61.8% Fibonacci target.

1 hour

The EUR/USD showed an ABC rally (green) and respected the Fib level neatly. If the wave 2 (brown) correction is completed, then this could indicate the start of wave 3 (brown). A break below the support (green) confirms that development.

GBP/USD

4 hour

The GBP/USD broke above the resistance trend line (orange dotted) which could indicate the start of a wave 2 correction (orange).

1 hour

The wave count within the wave 2 (orange) will most likely turn out to be an impulsive ABC correction (pink). So far the waves could indicate two deeper wave 2 pullbacks (green/blue).

USD/JPY

4 hour

The USD/JPY broke the support trend line and bottom of the triangle (blue) during the NFP event but quickly reverted back into the triangle zone, which is making the breakout look questionable.

1 hour

The USD/JPY is back to the average with an almost equally bullish momentum as bearish impulse. This could be explained by a deep wave 2 (blue) pullback which has an invalidation level at the top (100%).