ABC zigzag patterns connect waves in FX market 2016.02.12

EUR/USD

4 hour

The EUR/USD respected the resistance trend line (orange) and is forming a minor rising wedge chart pattern (orange/green). Price still has some space left before it hits major horizontal resistance (red).

1 hour

The EUR/USD seems to be building an ABC bullish zigzag (orange). A break below the bottom (100%) level invalidates the current wave outlook.

GBP/USD

4 hour

The GBP/USD is back into contracting triangle chart pattern. Price is in a bullish retracement territory as long as the Cable manages to stay above the support trend lines (green). This is probably part of larger wave 4 (purple), which indicates a pause within the downtrend.

1 hour

The GBP/USD choppiness continues as price retested the support trend line (green). A break above the resistance trend line (orange) would signal that a bullish continuation of wave Y (blue) is likely. A bearish breakout would invalidate the ABC (green) wave count.

USD/JPY

4 hour

The USD/JPY continued to move lower yesterday and eventually reached the 127.2% Fibonacci target at 111 before a correction became visible. Price remains in a downtrend as long as price remains below resistance (orange).

1 hour

The USD/JPY has retraced back to the 50% Fibonacci retracement level. A break below support (green) could see price continue with a bearish ABC (green).