Daily Wave Analysis for 18 December 2014 2014.12.18

4 hour EURUSD:

The EURUSD’s strong fall yesterday could indicate the reemergence of the downtrend but at the moment the most likely wave count is still a wave X (blue) as an expansion of the bigger wave 4 (green) correction.

60 min EURUSD:

Price could use the bottom for a bounce back up if this is indeed a wave X (blue).

GBPUSD

4 hour GBPUSD:

The GBPUSD’s price action has been very corrective and has formed a sideways range (red and green lines). Price bounced off of resistance yesterday and move all the way down to the bottom support.

60 min GBPUSD:

As long as price stays between support and resistance, price could either be in a wave 5 (blue/red) or still in a wave 4 (blue).

USDJPY

4 hour USDJPY:

The most common Fibonacci retracement for a wave 4 (magenta) is the 38.2 level.

60 min USDJPY:

There was a bullish break above the triangle (yellow dotted line). The bullish momentum is best explained by a X wave (red) belonging to a bigger correction (wave 4 magenta).