Wave count offers clear invalidation spots in Forex market 2016.07.11

EUR/USD

4 hour

The EUR/USD still remains in a larger consolidation zone (orange/green) and a larger wave 2 (brown) correction seems to be taking place via a WXY (purple). Price needs to break below the support (green lines) levels before a wave 3 (green) continuation is likely whereas a break above the 100% Fib at 1.1428 invalidates wave 2 (brown).

1 hour

Any potential bullish retracement could run into resistance at the Fibonacci levels of wave 2 (brown).

GBP/USD

4 hour

The GBP/USD is building a downtrend channel (green/orange) within a bearish wave 5 (blue/purple), which could see many extensions due to the strong momentum.

1 hour

The GBP/USD is in a wave 1-2 (blue) and would become invalid if price manages to break above the 100% Fib level. A break below the support trend line (green) could start the wave 3 (blue).

USD/JPY

4 hour

The USD/JPY attempted to break below the 100 round level, but ultimately was not able to close below the support level. Price is now retesting the resistance trend line (orange). A break below the 100 and support trend line (green) increases the chance of a bearish breakout towards the 61.8% Fibonacci support of wave 'B vs A' at 95. A break above resistance could indicate that the wave C (green) has not yet started and potential larger wave B (green) could develop.

1 hour

The USD/JPY wave 4 (pink) is invalidated if price manages to break above the 61.8% Fibonacci level.

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