GBPUSD Zigzag and EURUSD Range within Waves 2 2015.10.09

EUR/USD

4 hour

The EUR/USD broke the resistance trend line (dotted red) with a lot of hesitation. Price is still respecting the heavy resistance layer at around 1.1325 which is the 61.8% Fibonacci retracement level of wave 2 (brown). A break of the various support levels (greens) would confirm the completion of the wave Y (purple) correction and wave 2 (brown).

1 hour

Yesterday's price action has been choppy as price respected both the support and resistance levels. A bullish breakout could see price retrace deep towards the 78.6% Fibonacci level. A bearish breakout could at first be choppy as price hits other support levels but could be the start of a potential wave 1-2 development within wave 3 or C (green on 4 hour chart).

GBP/USD

4 hour

The GBP/USD respected and stopped at the 50% Fibonacci level of wave 2 (orange) but it seems that price was only making a pause before continuing higher. Price is developing a bullish ABC (green) zigzag formation.

1 hour

The GBP/USD made a deep pullback to the 50% Fibonacci retracement level as part of a wave B (green) and price seems now to be heading towards the wave C (green) Fibonacci target levels.

USD/JPY

4 hour

The USD/JPY remains anchored in a consolidation (red/green) within a sideways range (purple/blue). The indecision is dominating the chart but the wave count is favoring a bearish structure with a wave B and C (brown).

1 hour

The USD/JPY is taking a long time before breaking out to the downside and is regularly pulling back to resistance (orange/red). This could be part of a wave 1-2 formation and a break of the red resistance trend line invalidates the current wave structure. A break below support (green) could confirm the bearish breakout.