Daily Wave Analysis for 9 December 2014 2014.12.09

4 hour EURUSD:

The down trend is well captivated by the trend lines (orange) and is close to reaching monthly support (green line) at 1.2050-1.2250.

60 min EURUSD:

Usually speaking price goes to the 161.8 Fibonacci level when in a wave 3 (blue) so the bounce at the 138.2 yesterday was an early turn back up. It could be that the wave 5 (green) is still incomplete (current version) or that wave 5 (purple) will be extended.

GBPUSD

4 hour GBPUSD:

The GBPUSD has so far not broken support (green line) with a lot of conviction, which could be explained by an extended wave 2 (purple).

60 min GBPUSD:

Yesterday’s bullish correction was too impulsive to label the downside as impulsive so for the moment the best choice seems to be an extension of wave 2 (purple).

USDJPY

4 hour USDJPY:

The recent push up could have completed the waves 5 (blue and purple) and price is retracing back down, also probably due to the Japanese elections on Sunday which will be an unknown factor on the Japanese currency for the rest of the week.

60 min USDJPY:

The USDJPY is correcting downwards from the top of the channel.