Bearish breakout could retrace before downtrend continues 2016.07.20

EUR/USD

4 hour

The EUR/USD is slowly breaking the support trend line (dotted green) but it still has to break below horizontal support at 1.10 before a wave 3 (brown) seems likely.

1 hour

The EUR/USD is completing a bearish 5 wave (green) after breaking the support trend line (dotted green) and respecting the resistance trend line (red). The wave bearish 5 waves (green/blue) seem close to being completed. The wave 5's could be part of a wave 1 (purple) after which a wave 2 (purple) bullish retracement could occur before a larger downtrend continuation occurs as part of wave 3 (purple) of wave 3 (pink).

GBP/USD

4 hour

The GBP/USD broke the support trend line (dotted green) and contracting triangle and is now headed lower. Price is now most likely in a wave 3 (pink), unless price fails to break 1.2950-1.3050 support zone which would lead to a new wave count with a larger bullish correction.

1 hour

The GBP/USD seems to be building a wave 1 (green) within wave 3 (pink). Once the waves 5 (grey/blue) are completed, then a wave 2 (green) retracement could start.

USD/JPY

4 hour

The USD/JPY rally seems to be in a wave B (grey) pullback before more upside could be expected within wave C (grey). A break above the 161.8% target would indicate a bullish reversal and a change of the wave count from WXY (pink) to a 123.

1 hour

The USD/JPY seems to be building an ABC (purple) within wave Y (orange). A break above the Fibonacci levels of wave 'X vs W' would indicate the start of the wave C (grey). A break below the support trend line (green) increases the likelihood of a larger correction within wave B (grey).

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