EUR/USD Breaks Bear Flag and Continues Downtrend 2015.10.29

EUR/USD

4 hour

The EUR/USD broke the bear flag chart pattern during the FOMC news event and posted a new lower low which is most likely part of the wave 3 (purple). The bearish trend is either part of a wave 3 or wave C (green). A wave C could see price stop anywhere between the 100% and the 161.8% target whereas a wave 3 needs to see price move towards the 161.8% or preferably further.

1 hour

The EUR/USD could still move a bit lower to the next Fib target or be now ready for another wave 4 (purple) retracement to the Fibonacci levels. A break of the 50% Fib and trend line (red) invalidates the wave 4 (purple).

GBP/USD

4 hour

The GBP/USD broke the support trend line (green) which could indicate a downtrend continuation.

1 hour

The GBP/USD needs to have bearish price action to justify the development of wave 3 (green). A break above the top and origin of wave 2 invalidates the wave structure.

USD/JPY

4 hour

The USD/JPY is still marked as an ABC (blue) zigzag despite the bullish price action because of the bigger resistance zone.

1 hour

The USD/JPY needs to break above the top and Fib levels to invalidate the current ABC bearish zigzag whereas a break below support (green) could mark the moment of the wave C (blue) continuation.