USD Bearish Retrace to 38.2% Fib within Bullish Trend 2016.12.19

EUR/USD

4 hour

The EUR/USD bearish break below the support levels (dotted green) is seeing a bullish retracement at the moment. A wave 3 (brown) now seems likely although price needs to push below the 100% level to confirm a wave 3. The broken support (dotted green) could have the opposite role and become future resistance.

1 hour

The EUR/USD seems be in a wave 4 (purple) correction. A bearish turn at the Fibonacci levels of wave 4 (purple) could indicate a continuation of wave 3 (brown). A break above the 61.8% Fibonacci level of wave 4 vs 3 makes a wave 4 (purple) unlikely.

GBP/USD

4 hour

The GBP/USD bearish trend is also seeing a bullish retracement develop. The Cable could see further extensions to the Fibonacci targets if price manages to break below the 161.8% level.

1 hour

The GBP/USD seems to be in a wave 4 (orange) correction and the Fibonacci retracement levels of wave 4 could act as resistance. A break above the 61.8% Fibonacci level of wave 4 vs 3 makes a wave 4 (orange) less likely.

USD/JPY

4 hour

The USD/JPY uptrend is still pushing further but also this USD currency pair is witnessing a correction. A break above the resistance level (red) could see price continue towards the Fibonacci targets.

1 hour

The USD/JPY is most likely in a shallow wave 4 pullback (orange) and it could turn at the Fibonacci retracement levels of wave 4 (orange). A break below the 61.8% makes a wave 4 less likely. If price turns at one of the wave 4 Fibs, then price should continue towards a wave 5 (orange/brown/blue).

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