Daily Wave Analysis for 4 September 2014 2014.09.04

4 hour EURUSD:

Although price is facing a major level (daily bottom (green), there is no divergence between the bottoms which means that a continuation of the downtrend is likely (could be after orange wave 4 though).

60 min EURUSD:

A contracting triangle (light green lines) is indicating the current indecision.

GBPUSD

4 hour GBPUSD:

A break below the weekly support (green) could see price fall to the 61.8% Fibonacci target.

60 min GBPUSD:

Tuesday’s anticipated breakout (seen in wave analysis 2nd September) made 5 bearish waves which could be explained by a wave 3 (dark red). A wave 4 (dark red) could be the next step.

USDJPY

4 hour USDJPY:

Although price is showing signs of bullish momentum, it still needs to break above the monthly top (dark red) at 105.50 before bigger gains could be possible.

60 min USDJPY:

Price could make extensions within the wave 3 (dark blue) such as a wave 4 and 5 (light blue). A typical turning spot for a wave 4 is the 38.2% Fibonacci (magenta line is the invalidation).