EUR/USD, GBP/USD quickly swap bearish and bullish momentum 2016.07.18

EUR/USD

4 hour

The EUR/USD made a bearish bounce and turn at the resistance trend line (orange). Price action has fallen towards the 78.6% Fibonacci level of wave X (blue) and seems to be using it as support for a continuation of wave 2 (brown). The wave 2 (brown) becomes invalidated if price manages to break above the top at 1.1425 whereas wave 3 (green) could start if price manages to break below support (green line).

1 hour

The EUR/USD indeed completed the ABC (green) zigzag within wave X (blue) as mention on Friday. Now price could make a bullish ABC (green) within wave Y (blue) unless price manages to break below the 100% Fibonacci level of 'X vs W'.

GBP/USD

4 hour

The GBP/USD is building a contacting triangle chart pattern which is indicated by the support (green) and resistance (red) lines. A break above resistance invalidates wave 2 (pink) whereas a break below support makes a wave 3 (pink) continuation likely.

1 hour

The GBP/USD seems to be building a bearish impulse. A break above the 61.8% Fibonacci level of wave 4 (blue) invalidates the current wave count. A break below the support trend line (green) would see the completion of wave 5 (blue) of most likely wave 1 (green).

USD/JPY

4 hour

The USD/JPY broke the resistance trend line (red) and is moving quickly to the next Fibonacci levels. A break above the 161.8% target would indicate a bullish reversal and a change of the wave count from WXY (pink) to a 123.

1 hour

The USD/JPY completed the 5 wave (purple) within wave 5 (orange) on Friday as expected. Price is now building a correction within wave B (grey) most likely. A break of the support trend line (green) could price expand wave B (grey).

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