Forex market breaks trend lines and Fibonacci levels 2016.08.03

EUR/USD

4 hour

The EUR/USD broke the resistance (red dotted) of the small consolidation zone and moved up towards the 61.8% Fibonacci retracement level, which has served as a resistance point till now. A push above this Fib could see price challenge the 78.6% Fib level of wave 2 vs 1, but a break above 100% invalidates the wave count.

1 hour

The EUR/USD bounced at the 38.2% Fibonacci retracement of wave B vs A and is heading towards the Fibonacci targets of wave C vs A.

GBP/USD

4 hour

The GBP/USD is building a contracting triangle (red/green). The breakout will decide whether the Cable is bullish or bearish. Price is either in a bearish 123 (pink) or in a bigger ABC retracement (purple).

1 hour

The GBP/USD broke the resistance trend line (dotted orange) as expected yesterday after completing a wave X (grey). The bullish rally showed strong momentum and thus a larger ABC zigzag is expected for the moment (purple). The invalidation level of wave 2 (green) is at the 100% Fibonacci level of wave 2 vs 1.

USD/JPY

4 hour

The USD/JPY broke the support trend line (dotted green) and 61.8% Fibonacci level and made a bearish breakout which took price to the next Fibonacci level at the 78.6%. A bullish bounce could indicate a deep correction whereas another bearish break below this Fib level favours a larger bearish trend.

1 hour

The USD/JPY made a neat break of the trend line and channel (blue) followed by a quick down move towards the 78.6% Fib as explained in the Live Webinar at Admiral Markets yesterday.

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