Daily Wave Analysis for 30 December 2014 2014.12.30

4 hour EURUSD:

The EURUSD is in a neat yet slow downtrend channel which is indicated by the 2 trend lines (orange).

60 min EURUSD:

The EURUSD’s downtrend has passed the 127.2% Fibonacci retracement mark of the wave X (blue) and is approaching the last expected bouncing spot of 138.2 (invalidation level). It will be interesting to see if the double divergence (purple line on oscillator) will provide the support for a potential bullish bounce.

GBPUSD

4 hour GBPUSD:

The GBPUSD’s downtrend has reached the 127.2% Fibonacci retracement level of the wave X (purple), which could be a bouncing spot for the wave Y (purple and green).

60 min GBPUSD:

Price broke the bear flag but whether it can break the bottom and Fibonacci support levels during a week with many holidays seems less probable.

USDJPY

4 hour USDJPY:

Although the USDJPY is in an uptrend, there is a chance that price could retrace for a wave Y (red) of wave 4 (magenta).

60 min USDJPY:

Price is in a triangle (orange and purple trend lines). The top and bottom most likely indicate the bear and bull lines for this pair.