EUR/USD & GBP/USD Building Bear Flag and ABC Correction 2015.10.27

EUR/USD

4 hour

The EUR/USD has space to fall further within waves 3 (green/brown) but the momentum will depend on the FOMC rate decision and statement this week.

1 hour

The EUR/USD is probably in a wave 4 bear flag formation (bottom is geen line) and could head lower again at the wave 4 Fibonacci levels. A break above the 50% Fibonacci retracement level and the resistance trend line (red) would invalidate the wave structure. A break below the trend line (green) could confirm the start of wave 5 (blue).

GBP/USD

4 hour

The GBP/USD price action is caught in a contracting triangle in between support (green) and resistance (red) trend lines. A break of the resistance invalidates the bearish wave count whereas a break of support increases the chance of a wave 3 (orange/green) starting.

1 hour

The GBP/USD made a bullish push up yesterday at support (green) after completing wave 1 (pink), which could be a wave A (green) of a bigger ABC zigzag in wave 2 (pink). The 100% level is the invalidation mark.

USD/JPY

4 hour

The USD/JPY has reached the top of the sideways zone which could act as a resistance area and price could correct lower because of it. Price has to break the 100% level to invalidate the wave X (blue) and increase the chance of a bigger daily/weekly uptrend continuation.

1 hour

The USD/JPY is now facing an internal support line (green) within the consolidation. An ABC could bring price back to the bottom of the wider zone.