EUR/USD keeps building zigzags and USD/JPY breaks with impulse 2016.09.29
EUR/USD
4 hour
The EUR/USD is building a bullish retracement, which could become a head and shoulders pattern (purple boxes) if price makes a bearish turn at 1.1250. Such a rejection could occur when a bearish ABC (blue) zigzag occurs within the larger consolidation zone (purple/blue lines).
1 hour
The EUR/USD completed a 5th wave (green) within wave A (blue), which was followed by a new bullish wave A and B (green) zigzag. Price is now probably in a wave C (green) zigzag, unless price breaks above the 100% Fibonacci level.
GBP/USD
4 hour
The GBP/USD broke above the resistance trend line (dotted red), which makes a larger ABCDE contracting triangle (purple) more likely at the moment. However, the bearish alternative (pink 3) has not been removed from the chart because price is moving higher in a corrective channel (orange/green lines). A break above the 100% Fibonacci level is needed before wave 2 (blue) is invalidated.
1 hour
The GBP/USD is showing two wave counts. One where a larger ABC bullish zigzag (purple) is taking place within wave E (purple) and another where WXY (grey) is built within wave 2 (blue).
USD/JPY
4 hour
The USD/JPY remains stuck between the resistance of the daily downtrend channel (red) and the support of the various bottoms (green) and 88.6% Fibonacci level of wave 2 (purple). A break below the bottoms invalidates the bullish reversal, whereas a break above the bearish channel confirms the potential for a wave 3 (purple).
1 hour
The USD/JPY broke above the resistance (dotted orange) and indeed wave 3 (brown/blue) momentum seems to have started. If this is the case, then price is expected to build a bull flag or triangle at one of the Fibonacci targets as part of a wave 4 (brown) within wave 3 (blue).
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