Multiple Divergence Prepares EUR/USD for Pullback & Continuation 2015.11.06

EUR/USD

4 hour

The EUR/USD has (early) signs of divergence as price made a lower low but the oscillator, which has already turned green, failed to post a lower low (blue line). This could indicate that price has completed a wave 5 (purple) and that price can make a retracement for wave 4 (brown) back to the long-term moving average (dotted purple), which is also equal to 38.2%-50% Fibonacci levels and the previous wave 4's (purple/blue).

1 hour

The EUR/USD has double divergence on the hourly chart (blue line), which also increases the chance that waves 5 (blue/purple) and wave 3 (brown) have indeed been completed at yesterday's lower low.

GBP/USD

4 hour

The Bank of England (BOE) news event sent the GBP lower yesterday and made the GBP/USD break the support trend lines (dotted green/blue). The impulsive price action fits the current and anticipated waves 3.

1 hour

The GBP/USD completed a wave 3 and 4 (blue) and is in a wave 5 (blue) falling towards the Fibonacci targets.

USD/JPY

4 hour

The USD/JPY is attempting to break above the resistance levels of the sideways zone (brown). For the moment the wave structure is marked as a wave A (blue), which means that a wave B correction & wave C continuation can follow later (after A is completed).

1 hour

The USD/JPY is in an uptrend channel (dark green lines) and price is heading towards the Fibonacci targets. A break below the channel (dark green) could indicate the completion of a wave A (blue).