EUR/USD Breaks 1.0460 Support from March 2015 2016.12.16

EUR/USD

4 hour

The EUR/USD broke below the major support levels from the weekly chart (dotted green) for the first time in nearly 2 years. A wave 3 (brown) now seems likely although price should still push below the 100% level to confirm a wave 3.

1 hour

The EUR/USD seems be in a wave 4 (purple) correction. A bearish turn at the Fibonacci levels of wave 4 (purple) could indicate a continuation of wave 3 (brown). A break above the 61.8% Fibonacci level of wave 4 vs 3 makes a wave 4 (purple) unlikely.

GBP/USD

4 hour

The GBP/USD also broke a strong support trend line (dotted green) for the 2nd time in a row. The Cable pushed beyond the support (red) and fell towards the 161.8% Fibonacci target of wave 3 (blue). Price could see further extensions to Fib targets if price manages to break below the 161.8% level.

1 hour

The GBP/USD seems to be in a wave 4 (orange) correction and could head towards lower Fib targets if price turns this or next week at the Fibonacci retracement levels of wave 4. A break above the 50% Fibonacci level of wave 4 vs 3 makes a wave 4 (orange) less likely.

USD/JPY

4 hour

The USD/JPY uptrend is still ongoing as price pushed higher with a few more 4 hour candles. A small pause seems to be occurring at the moment. A break above the top could see price continue towards the Fibonacci targets.

1 hour

The USD/JPY is most likely in a shallow wave 4 pullback (orange). Price should turn at the Fibonacci retracement levels of wave 4 (orange). A break below the 50% makes a wave 4 less likely. If price turns at the wave 4 Fibs, then price should continue towards a wave 5 (orange/brown/blue).

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