EUR/USD Rebounds and Breaks Resistance for ABC Rally 2015.09.01

EUR/USD

4 hour

The EUR/USD has bounced at the support trend line (green). The bullish bounce has strong resistance levels above it and a break of the top and the 38.2% Fib at 1.17 is not expected.

1 hour

The EUR/USD did indeed show a bullish bounce at the bottom (wave B) and is now rallying as part of an ABC correction (purple).

GBP/USD

4 hour

The GBP/USD bounced off the horizontal support level (green) for the 2nd time which most likely created a double bottom. Once a 5 wave impulse is completed then the typical correction will occur via an ABC.

1 hour

A break of the resistance trend line (red) could indicate the potential for wave C (magenta) to rally higher.

USD/JPY

4 hour

The USD/JPY moved back to the moving averages and now broke below the support trend line (dotted green) which could indicate the potential start of wave 5 (purple).

1 hour

The bearish price action is either an impulsive wave (123) as indicated in the image or alternatively an expansion of the bullish correction. A breakout above resistance (orange) would indicate the need to change the wave structure from a wave 4 to a corrective wave W or wave X.