Daily Wave Analysis for 19 December 2014 2014.12.19

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 bounced off of support (green) yesterday which could be explained by corrective price action within wave Y (green) of wave 4 (blue).

60 min GBPUSD:

Price is most likely making complex corrections as long as price stays between support and resistance.

USDJPY

4 hour USDJPY:

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

60 min USDJPY:

A bullish 5 wave (blue) as part of an ABC correction (purple) seems the most likely, but the wave count is vulnerable to change when price passes through wave X (red) retracement levels.