USD bullish momentum loses control and corrects with ABC zigzag 2016.11.28

EUR/USD

4 hour

The EUR/USD finally showed a bullish bounce at the support zone and a break above the resistance trend line (orange), which is probably starting a wave 2 (green) correction. Price has reached the 23.6% Fibonacci level but typically retraces deeper in a bearish wave 2 without breaking above the 100% Fibonacci level (invalidation).

1 hour

The EUR/USD seems to be indeed in an ABC (purple) zigzag, which is most likely part of a larger WXY (brown) correction. At the moment a wave 4 (blue) and 5 could still take place within the zigzag.

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 but a break above the 100% Fibonacci level invalidates the wave 2 (blue).

1 hour

The GBP/USD has reached the 61.8% Fibonacci resistance level of wave 2 (blue). In the case that this indicates the completion of the WXY (orange) correction of wave 2 (blue), then a bearish wave 1 (orange) should start and price will eventually break support (green). In case the resistance trend line (red) breaks, price could retest deeper Fib levels of wave 2 (blue).

USD/JPY

4 hour

The USD/JPY bullish momentum ran out of steam and broke the support trend lines (dotted green). Price most likely completed wave 3 (blue) and is now retracing within wave 4 (blue). The23.6% and 38.2% Fibonacci levels are expected to act as support.

1 hour

The USD/JPY has retraced back to the 23.6% Fibonacci support but price could extend the wave 4 (blue) correction via WXY (brown).

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