EUR/USD’s Bullish Correction within Bearish Wave 2 2015.09.30
EUR/USD
4 hour
The EUR/USD is building a larger consolidation zone within the wave 2 (brown). The Fibonacci levels are resistance zones as part of wave 2 (brown) for a bearish continuation. A break above the top (100%) invalidates the 1-2 development whereas a break below support (green) could initiate the start of wave 3 or C (green).
1 hour
The EUR/USD showed a bearish movement yesterday from the 1.1275 resistance, which completed the bullish wave C(green movement). The EUR/USD is now in a bullish channel (green/yellow) with a potential to expand the correction via waves Y (blue/purple). A break below the support levels (green) could indicate the completion of wave 2 (green).
GBP/USD
4 hour
The GBP/USD has pushed slightly below the support level (green) but this price action has not invalidated the potential for a wave X (pink) as price stayed above the 138.2% (even above the 127.2%).
1 hour
The GBP/USD is in a bearish channel (orange lines). The direction of the breakout could give an indication of the short-term potential. A bullish break could start wave 2 (orange) whereas a bearish break below the 127.2/138.2% changes the wave count.
USD/JPY
4 hour
The current wave count of the USD/JPY contracting triangle is invalidated if price were to break above the C resistance point (purple trend line). A break below support could indicate the potential for a 3rd purple wave.
1 hour
The USD/JPY completed the first bearish wave (purple) and is now in a retracement mode. A break above the origin of wave 1 (100% Fib level) would invalidate the potential wave 1-2 structure.