US Dollar slow bullish correction implies further weakness 2016.08.02

EUR/USD

4 hour

The EUR/USD is building a flat consolidation zone which is a passive correction. Prior to the correction, price was showing bullish momentum so a renewed bullish continuation seems likely at this point. The Fibonacci levels of wave 2 vs 1 are resistance levels, but a break above 100% invalidates the wave count.

1 hour

The EUR/USD could move up higher via a bullish ABC zigzag (green) after it is able to break the resistance trend line (red).

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

A bearish correction has indeed taken price back to the support trend line (green) which is a bounce or break spot. A bearish break could see price retest the next support trend line. A bullish bounce could see price develop a move back up to the test the Fibonacci levels of wave '2 vs 1'. A break above the 100% Fibonacci level of wave 2 vs 1 invalidates the bearish wave count.

USD/JPY

4 hour

The USD/JPY bearish correction took price down to the 61.8% Fibonacci level of wave 'X vs W'. Price seems to be respecting the Fibo level and support trend line (green). A bullish bounce could take price back to resistance (yellow/red) whereas a bearish break could see price move to the lower Fib levels.

1 hour

The USD/JPY is building a channel (blue), which could be a base for a new uptrend or a bear flag correction. This depends on whether price is able to break below support or above the channel resistance.

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