Momentum Boost in Forex Market 2016.01.22

EUR/USD

4 hour

The EUR/USD broke one of the support trend lines (dotted green) during the ECB news event. A break below the next support level (light green) could price fall towards the Fibonacci retracement level of wave X vs W.

1 hour

The EUR/USD broke below the chart pattern with an impulsive wave C (pink). The bullish bounce saw price move back to the resistance (orange) trend line, which could be a wave X (green) of a larger correction.

GBP/USD

4 hour

The GBP/USD showed another lower low yesterday which brought price back to the bottom of the downtrend channel. Here price made a sturdy bullish bounce, which took price back to resistance (orange). The bullish bounce could be a first indication that the wave 5's have been completed but this does depend on whether price can break above the trend line.

1 hour

The bullish impulse could be part of a larger ABC (green) zigzag. There is triple divergence present when looking at the trend lines on the oscillator, which increases the chance of price a bigger correction.

USD/JPY

4 hour

The USD/JPY is breaking the resistance trend line (dotted orange). The breakout could see price head higher towards the Fibonacci retracement levels of wave X (green).

1 hour

The USD/JPY is showing two bullish zigzags in a row (pink). Currently price is moving higher as part of wave C. The 161.8% target is equal to the 38.2% Fibonacci retracement on the 4 hour chart.