EUR/USD, GBP/USD fail to break and remain in wave-2 2016.07.22

EUR/USD

4 hour

The EUR/USD did not break the support trend line (green) and is therefore still in a wave 2 (purple) retracement unless price breaks below the support (green) or above the 100% Fibonacci level and resistance (orange), which invalidates the wave 1-2.

1 hour

The EUR/USD could be in a larger ABC (blue) correction due to the lack of a break. The Fibonacci levels should act as resistance.

GBP/USD

4 hour

The GBP/USD is losing momentum and is building a triangle chart pattern. Whether the Cable is bullish or bearish will depend on the direction of the breakout. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD is building a triangle (red / green lines). A break below both support trend lines is needed before a wave 3 (green) could be expected. A break above the 100% Fibonacci level invalidates wave 2 (green). The Fibonacci levels should act as resistance.

USD/JPY

4 hour

The USD/JPY was unable to break above the 161.8% Fibonacci target and resistance trend line (red) from the daily chart. If price breaks the support trend line a retest of support (green) could occur. A break above resistance (red) indicates a potential long-term bullish breakout.

1 hour

The USD/JPY seems to have completed the ABC (grey) zigzag but price is still in a support zone and could expand the bullish bounce if it does not break below support. A break of support could see price continue with a bearish 12345 or ABC zigzag (on chart).

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