Major Currency Pairs Initiate ABC Zigzag Corrections

Posted By FxNewInfo.com Posted On 13 January 2016

EUR/USD

4 hour

EURUSD

The EUR/USD remains in a narrow price range since the beginning of December. A bearish breakout below support (green) could see an expansion of wave X (brown) whereas a bullish breakout above resistance (orange) could see a continuation of wave C (purple).

1 hour

EURUSD

The EUR/USD continued its bearish retracement yesterday without breaking the bottom of wave B (purple). A break below that bottom (green) invalidates the current wave 1-2 (blue) whereas a break above resistance (yellow) could see price head to the Fibonacci targets of wave 3 (blue).

 

GBP/USD

4 hour

GBPUSD

The GBP/USD broke the bottom of the downtrend channel and made yet another lower low. Price has however reached the 61.8% Fibonacci target which could cause a retracement.

1 hour

GBPUSD

The GBP/USD seems to have completed multiple 5th waves with the recent lower low. However, in a strong trend price can build extensions that are push the trend further, so an alternative wave count could be a wave 1-2 (orange) for instance. For the moment an ABC correction (blue) seems to be the path of least resistance.

 

USD/JPY

4 hour

USDJPY

The USD/JPY broke above the resistance trend line (dotted red) after building 5 waves and approaching new support levels (blue) from a daily chart. This could cause price to make a bullish bounce, which seems best explained by a potential wave WXY (green) formation.

1 hour

USDJPY

The USD/JPY seems to have completed the AB part of a larger bullish ABC zigzag (brown).

Related Posts

FxNewInfo.com - The Website will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts. Please be fully informed regarding the risks and costs associated with trading the Forex Markets, it is one of the riskiest investment forms possible. Currency forex trading on margin involves high risk, and is not suitable for all investors. Before deciding to forex trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.