EUR/USD Downtrend Channel Challenges Support Trend Lines 2015.10.20

EUR/USD

4 hour

The EUR/USD price action has been moving choppily within the wave 2 or wave B (green). A downtrend is confirmed when price has made a clear higher low via a potential wave 2 (orange) or when price breaks the 2 support trend lines.

1 hour

The EUR/USD broke the mini support trend line (dotted green) and moved down lower to the next support (olive green). A break below it could see another extension of wave 5 (pink) of wave 1 (orange). A break above the top of the channel (red) could see price move towards the wave 2 resistance Fibs.

GBP/USD

4 hour

The GBP/USD is attempting to break the resistance trend line (red) and if price does break it, then another resistance zone is higher at the 78.6% and 88.6% Fibonacci retracement. A move up towards that level could complete the expected ABC formation (green). A break above the 100% level invalidates the wave 1-2 (orange). A break below the support trend line (green) is needed before a wave 3 or C (green) becomes more likely.

1 hour

The GBP/USD is building a wave 4 (blue) triangle formation. A break above resistance (orange) would increase the chance of the development of a wave 5 (blue). A break below the 50% Fibonacci retracement level increases the likelihood that the ABC (green) has already been completed.

USD/JPY

4 hour

The USD/JPY price action is back in the middle of consolidation zone (purple and blue dotted lines).

1 hour

The USD/JPY price action has slowed down substantially and is now building an ascending wedge chart pattern (orange and green lines). A break above resistance could see price move higher as part of wave C (green) whereas a break below support could see price struggle at the wave B support Fibonacci levels.