Daily Wave Analysis for 11 December 2014 2014.12.11

4 hour EURUSD:

The EURUSD has pushed above the down trend channel (orange) but did not manage to break last week’s high (red). It remains to be seen whether waves 5 (blue and magenta) are completed or whether the bullish momentum is a retracement for more downtrend.

60 min EURUSD:

The bearish wave count is now showing a 5 wave diagonal which allows overlapping between wave 1 and 4 (red). The support trend line is another level to watch as it symbolizes the intra-week bullish trend.

GBPUSD

4 hour GBPUSD:

Just like EURUSD, the GBPUSD has pushed above the down trend channel (orange) but did not manage to break last week’s high (red).

60 min GBPUSD:

The GBPUSD wave 2 (purple) has hit the 78.6 Fibonacci retracement level. The invalidation level of the wave 2 is at the 100 mark.

USDJPY

4 hour USDJPY:

The USDJPY is moving down quickly towards the potential wave 4 (magenta) Fibonacci retracement levels of 23.6 and 38.2. Please note that there are Japanese elections on Sunday which will be an unknown factor for the Japanese currency for the rest of the week and during the weekend.

60 min USDJPY:

The USDJPY is most likely in wave Y (green) correction of wave 4 (magenta).