EURUSD & GBPUSD Bullish Rally at Resistance Zone 2015.10.07

EUR/USD

4 hour

The EUR/USD bounced at the support trend line (greens) and has reached again the resistance trend line (red). Price still seems to be correcting within a wave 2 (brown), which is invalidated if price breaks above the 100% (purple) line.

1 hour

A break above the resistance trend line (red) could be part of an ABC (blue) within wave Y (purple) of wave 2.

GBP/USD

4 hour

The GBP/USD could be breaking the resistance level (orange) of the sideways range. Waves 2 typically tend to be deep retracements on average which means price could retrace back to 50%, 61.8%, 78.6% and trend line (red).

1 hour

The GBP/USD showed strong bullish price action yesterday after it bounced at the support trend line (green). Price action seems to be unfolding in 5 waves which could be part of a larger wave A (green) as price rallies to correct wave 2 (orange).

USD/JPY

4 hour

The USD/JPY seems to have made a bearish turn as part of a potential deep wave 2 (purple). Price will need to break below the range before a bigger wave 3 (purple) thrust becomes more likely.

1 hour

The USD/JPY respected the resistance trend line (red) with 2x back to back wave 1-2 formations. If price is in a wave 3 (green) then it will most likely reach at least the 261.8% Fibonacci target after which a wave 4 and 5 (green) could complete wave 3 (blue).