The Wave Structure and Main Fib Levels in Last Week of 2016

EUR/USD

4 hour

The EUR/USD downtrend is building a major consolidation zone the broken support levels from 2015 (dotted greens). Price will need to break below support (green/blue) before a bearish continuation becomes more likely.

1 hour

The EUR/USD is building a bear flag chart pattern (red/blue) as part of the expanded wave 4 (purple). A break above the Fib levels of wave 4 vs 3 would invalidate the current wave structure. A bearish breakout below the support (blue) could see price continue with the downtrend.

GBP/USD

4 hour

The GBP/USD downtrend should continue as long as price stays in the bearish channel (green/red). When the 'Cable' breaks support again, price could fall towards the Fibonacci targets in the upcoming trading weeks and retest the previous bottom (green line).

1 hour

The GBP/USD has made a bearish turn at the Fibonacci levels of wave 4 (orange), which would become invalidated if price breaks above the 61.8% Fib. A breakout below the channel (green) could indicate a continuation of the wave 5 (orange).

USD/JPY

4 hour

The USD/JPY uptrend is building a retracement with 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. A break below support (green) and the Fibonacci levels would invalidate the wave structure.

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