EUR/USD, USD/JPY build multiple chart pattern formations 2016.11.23

EUR/USD

4 hour

The EUR/USD downtrend is taking a long pause near major support levels (green) from the daily-weekly charts. A break above the resistance trend line (orange) could start a wave 2 (green) correction whereas a break below the minor support (blue) see a small fall to test the higher time frame support (greens).

1 hour

The EUR/USD continues to build a bear flag chart pattern (red/green). A bearish break could see price test the 1.05 support zone. A bullish break above resistance (orange) could indicate the completion of wave 1 (green) and continuation of wave 2 (green) correction.

GBP/USD

4 hour

The GBP/USD needs to break below the support trend line (green) before the wave 2 (blue) is completed. At the moment an extended wave 2 (blue) could occur via a WXY (orange) correction.

1 hour

The GBP/USD completed an ABC (grey) zigzag at the 61.8% Fibonacci level of wave 2 (blue). Price could complete the wave 2 at Fibonacci retracement levels although a break above the 100% level invalidates the current wave count. If price is not building an expanded correction (WXY orange), then price will break through the Fibonacci support and trend lines (blue/green).

USD/JPY

4 hour

The USD/JPY bullish momentum slows down which could indicate that a wave 3 (blue) is near completion. It also means that a wave 4 (blue) retracement could start when price is able to break below the support trend line (green).

1 hour

The USD/JPY could be ready to build an ABC (brown) zigzag correction within wave 4 (blue) unless price breaks above resistance (orange).

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