Forex market shows calmness before the storm 2016.03.15

EUR/USD

4 hour

The EUR/USD continues with building a contracting triangle after strong bullish momentum last week. Price has stopped at the 38.2% Fibonacci and could the same with other retracement levels. A break below the bottom of wave X (blue) invalidates the current wave count.

1 hour

The EUR/USD seems to be building an ABC bullish zigzag (green). A break above resistance (orange) could see the start of wave C (green). A break below support (green) could see price fall towards the lower Fibonacci retracement level.

GBP/USD

4 hour

The GBP/USD has moved back to the bottom of the uptrend channel (green), which is a bounce or break spot on the chart. The wave count is suggesting that the bullish ABC zigzag has been completed. If this is true, then eventually a bearish breakout should occur. A break above the 100% Fibonacci level invalidates the wave 1-2 (blue) structure).

1 hour

The GBP/USD is at a potential support level (greens). A bullish bounce and break above resistance could indicate an ABC rather than a 123 (pink).

USD/JPY

4 hour

The USD/JPY remains in a larger sideways correction (orange/green). Price seems to be moving away from resistance and break below the inner support trend line (dotted green).

1 hour

The USD/JPY respected the 78.6% Fibonacci level and seems to be heading lower as part of wave C (green).