EURUSD & GBPUSD Develop ABC Bullish Zigzag Patterns 2015.12.10
EUR/USD
4 hour
The EUR/USD displayed bullish momentum during yesterday's trading day, which confirmed the development of an ABC rally (brown).
1 hour
The EUR/USD broke above the resistance (dotted orange) and showed a bigger bullish impulse. This could have completed a wave 3 (purple) within wave C (brown). Major resistance is nearby at 1.1, which is resistance from a higher time frame and the 61.8% Fibonacci target.
GBP/USD
4 hour
The GBP/USD indeed displayed a bullish bounce at the 78.6% Fibonacci level and made a significant rally as part of the expected ABC (green) zigzag.
1 hour
The GBP/USD showed a strong bullish break and momentum above the resistance (dotted orange), which could be a wave 3 as well (blue). A potential 5th wave has more chance of developing when price stays above the 50% Fibonacci level of wave 4 (blue).
USD/JPY
4 hour
The USD/JPY broke the support level of the entire consolidation zone (dotted green), which expands the wave Y (blue) correction.
1 hour
The USD/JPY accelerated below the support (dotted green) all the way to the 261.8% Fibonacci target, which is a common distance for a wave 3 (pink) but for a wave C. The wave count now reflects this change and indicates a likelihood of a wave 4 (pink) retracement.