US Dollar Buids Bearish Zigzag Pattern

January 12, 2017 05:30

EUR/USD

4 hour

The EUR/USD bounced near the support trend line (blue) connecting the previous bottoms. Price is now retesting again resistance trend lines (orange/red). Price could make a bearish turn at the 61.8% or 78.6% Fib if price breaks above resistance (orange/red). The wave 2 (brown) is invalidated if price breaks above the 100% Fibonacci level of wave 2 vs 1.

1 hour

The EUR/USD is most likely in a wave 4 (orange) correction and a break above the trend line (orange) could indicate a potential for price to move towards the Fibonacci targets. This could be part of a larger ABC zigzag (green).

GBP/USD

4 hour

The GBP/USD bounced strongly at the 61.8% Fibonacci target of wave 5 vs 1+3 and at the support trend lines (both green). The impulsive price action could be a first indication that the downtrend is over but a break above resistance (red) is needed to confirm it.

1 hour

The GBP/USD is however on the lower 1 hour time frame still showing a potential for more downtrend. The invalidation level of the wave 4 (orange) occurs if price manages to break above the 78.6% Fib level.

USD/JPY

4 hour

The USD/JPY broke the support level (dotted blue) and is expanding the ABC (blue) correction within wave 4 (purple). The 23.6% and 38.2% Fibonacci levels of wave 4 (purple) are potential bouncing spots.

1 hour

The USD/JPY failed to break resistance (red) and completed an ABC zigzag (orange) within wave 4 (brown). The current bearish price action is probably part of a wave 5 (brown).

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