Dramatic reversal on US Dollar after Election Day 2016.11.10

EUR/USD

4 hour

The EUR/USD increased strongly at the start of the US Election Day but made an equally dramatic turnaround. The bearishness has been so impulsive that the fall has been labelled as a wave 1 (green). The wave e (green), however, is quite short in its current form and therefore an alternative but possible scenario is that the wave 1 (green) is still part of a larger correction. The wave 1 (green) would certainly be invalidated if price manages to break above the top (red) and 61.8% of wave E vs D.

1 hour

The EUR/USD could build an ABC zigzag within wave 2 (green).

GBP/USD

4 hour

The GBP/USD keeps building a WXY (blue) correction within wave 4 (green). Once wave 4 (green) is completed, a downtrend continuation is expected to push below support for wave 5 (blue/purple).

1 hour

The GBP/USD is moving sideways between support (greens) and resistances (red). Within the corrective environment price could be building a zigzag (grey) but if price fails and breaks support (green) then price could be starting a new downtrend.

USD/JPY

4 hour

The USD/JPY showed an equally dramatic turn as the EUR/USD. The strong bearish sentiment was eventually replaced by a strong bullish sentiment. For the moment the bullish reaction has been labelled a wave (purple) as well.

1 hour

The USD/JPY seems to be building a series of 5 waves (blue) within wave 1 (purple). An ABC zigzag is expected within wave 2 (purple).

Follow @ChrisSvorcik on twitter for latest market updates