FOMC triggers USD weakness: next waves explained 2016.03.17

EUR/USD

4 hour

The EUR/USD finally broke above the contracting triangle chart pattern as expected. This could lead to the continuation of wave C (green).

1 hour

The EUR/USD could expand the bullish breakout above resistance (dotted orange) as part of the wave C (green) via an impulsive 5 waves.

GBP/USD

4 hour

The GBP/USD has respected the 61.8% Fibonacci support level. There was also a strong bullish reaction at that support level. Lastly there is also bullish divergence between the bottoms on the daily chart. These 3 aspects increase the chance that the GBPUSD could make a larger bullish correction as indicated by WXY (blue).

1 hour

The GBP/USD broke above resistance (dotted red) with lots of momentum.

USD/JPY

4 hour

The USD/JPY remains in a larger contracting triangle (orange/green). Price could have completed a wave E (blue) of wave X (brown), although a break below the support trend line (green) would provide more confirmation. A break above the top of wave C (blue) invalidates the bearish triangle.

1 hour

The USD/JPY broke below the support trend line (dotted green) after completing a bullish ABC zigzag (pink). Price could be starting a new bearish trend after completing wave E (blue).