Decisive movements for EURUSD downtrend and GBPUSD triangle 2016.05.23
EUR/USD
4 hour
The EUR/USD is building another bear flag chart pattern (orange) within the downtrend channel (red/green). Wave C (blue( corrections are typically equal to the length of wave A so a break below the 100% Fib target increases the likelihood of a potential wave 3 (orange).
1 hour
The EUR/USD is most likely building a wave 4 (grey) retracement as long as price stays below 61.8% Fibonacci retracement level. A break below the small support trend line (solid green) could spark the bearish breakout for wave 5 (orange).
GBP/USD
4 hour
The GBP/USD is building a contracting triangle between support (green) and resistance (red). A break above the long-term resistance trend line (red) and the 100% Fibonacci level invalidates the current wave count where a bigger bearish ABC (pink) is expected. A break below the inner support trend line (green) confirms the development of an ABC whereas a break below the outer support trend line (dark green) makes a reversal and a 123 (purple) more likely.
1 hour
The GBP/USD broke the triangle on Friday to the down side (dotted green). Price is showing bearish momentum which can be explained by a 3rd wave (green) or C wave (orange). A break above the 50% Fibonacci level invalidates a wave 4 (green).
USD/JPY
4 hour
The USD/JPY seems to have completed a wave 3 (purple) and is now retracing back as part of a wave 4 (purple). Typical wave 4 retracements are the 23.6% and 38.2% Fibonacci levels. There are also trend lines which are providing extra support (blue lines).
1 hour
The USD/JPY is in a bearish zigzag (orange) which has taken price down to the trend line and 23.6% Fibonacci level.
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