Daily Wave Analysis for 3 February 2014 2014.02.03

EURUSD

The EURUSD broke the bull flag pattern (orange lines) to the downside and an impulsive correction is taking place to potentially complete a wave c (blue).

4 hour chart EURUSD:

The EURUSD is now most likely making 5 waves down for a wave 5 (green). Wave 4 and 5 (green) probably remain.

60 min chart EURUSD:

GBPUSD

The GBPUSD is in an uptrend but it is close to big weekly resistance (thicker red).

4 hour chart GBPUSD:

Wave count has been changed to place the wave 5 (green) of wave 5 (blue) at the top. An upside breakout (green arrow) could occur above the trend line (purple), whereas a potential downside breakout can occur (red arrow) if price breaks through support (blue).

60 min chart GBPUSD:

USDJPY

Price could have completed a retracement for wave 4 (blue) and therefore a continuation higher from the 38.2% Fib up to wave 5 is a decent possibility.

4 hour chart USDJPY:

The lower time frame wave count could either be wave 1-2’s (with a triple bottom) or a corrective count. A break (green arrow) above resistance (light purple) will increase the likelihood of 1-2’s, a break below support (green) will increase likelihood of a corrective count (current wave count is then invalid).

60 min chart USDJPY: