EUR/USD, GBP/USD Build Bear Flag Chart Patterns within Downtrend 2016.12.22

EUR/USD

4 hour

The EUR/USD is in a downtrend as long as price stays below the resistance (orange) trend line and the broken bottoms (dotted greens). At the moment, price is building a correction and it will need to break below support (green/blue) trend lines and the 100% Fibonacci level of wave 3 vs 1 before a bearish continuation becomes more likely.

1 hour

The EUR/USD is building a bear flag chart pattern (red/blue) with an expanded wave 4 (purple). A bearish breakout below the support (blue) could see price continue with the downtrend.

GBP/USD

4 hour

The GBP/USD downtrend seems to indeed be building a retracement within wave 4 (blue). A break today below the bottom of the current wave 3 (blue) could indicate a downtrend continuation to retest the previous low (green horizontal line).

1 hour

The GBP/USD Fibonacci levels of wave 4 (blue) should act as resistance spots for a potential bearish turn. A break above the 50% Fib does make a wave 4 (blue) less likely. A break below the support of the bear flag pattern (orange/blue lines) could indicate a bearish fall towards the Fibo targets of waves 5.

USD/JPY

4 hour

The USD/JPY uptrend is retracing within a contracting triangle chart pattern. A break above the resistance level (red) could see price continue towards the Fibonacci targets.

1 hour

The USD/JPY seems to be building a wave 1 and 2 (green) within the uptrend. A break above the resistance trend line (red) could see price continue towards the Fibonacci targets.

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