Trend Lines Offer Decision Spots in FX Market 2015.09.02

EUR/USD

4 hour

The EUR/USD has bounced at the support trend line (green) but the rebound has been relatively slow which has created a triangle. A break above resistance (red) or below support (green) could trigger more momentum.

1 hour

The EUR/USD completed an ABC rally (purple) after breaking above resistance (orange). After that it made a deep pullback which probably belongs to a bigger bullish correction like a wave X retracement (purple).

GBP/USD

4 hour

The GBP/USD price action is captured by a neat downtrend channel but it has reached the 61.8% Fibonacci target of wave 5 (orange). A break above resistance (orange) or below support (green) could trigger more momentum.

1 hour

Divergence is still present with the recent break of the bottom (purple).

USD/JPY

4 hour

The USD/JPY had a strong bullish rebound which increases the chance of wave 5 (dark red) failing to break the bottom - especially when one considers the big wick on the bottom of the last week's weekly candle.

1 hour

A break of the resistance (orange) indicates that a wave (blue) is invalidated. The alternative is a corrective wave pattern or a truncated wave 5 (failure to break the bottom).