Bounce or Break at EUR/USD’s Support Trend Line 2015.09.03

EUR/USD

4 hour

The EUR/USD has retraced back to the long-term support trend line (green). This could be a hook back for another bullish bounce as indicated in the current wave count. A break of the support trend line would indicate a potential bearish breakout and change the wave structure.

1 hour

The EUR/USD is in a triangle chart pattern with resistance (red/orange) and support (green) marking the break zones. A bearish break would invalidate the current WX (purple) wave count.

GBP/USD

4 hour

The GBP/USD pushed lower yesterday but the oscillator has made a clear turn and is retracing back to the middle point, which means that the currency pair is in retracement territory.

1 hour

The GBP/USD is still moving to lower levels in the neat downtrend channel. However, a correction back to the top of the channel or long-term moving average is a decent possibility with the presence of double divergence and a small opposite momentum (wave A - magenta).

USD/JPY

4 hour

The USD/JPY seems to have completed 5 waves for a truncated wave 5 (purple) due to the failure to break the bottom of wave 3.

1 hour

The USD/JPY seems to be building an ABC correction (purple).