Daily Wave Analysis for 12 December 2014 2014.12.12

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 bullish momentum could be explained by a 5 wave (magenta) belonging to a bigger correction (ABC blue).

GBPUSD

4 hour GBPUSD:

The start of wave 5 (blue) has been choppy and corrective. A break of resistance could indicate that waves 5 (red and blue) have already been completed.

60 min GBPUSD:

The GBPUSD remains below last week’s weekly high.

USDJPY

4 hour USDJPY:

Japanese elections will be held on Sunday which could have a major impact on the Japanese currency for the rest of the week and during the weekend.

60 min USDJPY:

The USDJPY is most likely in wave X (purple) correction of wave 4 (magenta).