Major Forex Pairs Advance with ABC Zigzag Formations 2015.07.13

EUR/USD

4 hour

The EUR/USD managed to break above the inner trend line (orange dotted) and could use the same broken line as a support for a bounce to the top of the wedge (trend lines on top and bottom).

1 hour

The EUR/USD showed strong momentum when breaking the resistance trend line (dotted orange), which could indicate the likelihood of a wave A (blue).

GBP/USD

4 hour

The GBP/USD showed strong bullish momentum once it broke above the resistance (dotted magenta). Due its strength the wave could be a potential wave 3 (orange), which means that the current consolidation could be a wave 4 (orange).

1 hour

The invalidation point is if price moves below the 61.8% Fibonacci before breaking the top.

USD/JPY

4 hour

The USD/JPY showed a bullish ABC zigzag (lavender) but stopped at the resistance trend line (orange). A break of the top of the waves 5 is needed in the next 2 weeks otherwise it is more likely that a bigger wave X (green) is taking place.

1 hour

The USD/JPY alternative is a 12345 (blue) which could in turn be part of the ABC (lavender). The invalidation level is if price breaks below the support line (blue).