US Dollar Starts New 2017 Trading Year at Support

January 02, 2017 05:45

EUR/USD

4 hour

The EUR/USD bullish retracement has turned at the resistance trend lines (red) and 61.8% Fibonacci level of wave 2 (brown). A break below the support (blue/green) is needed before a wave 3 (green) continuation of the bearish trend can be considered.

1 hour

The EUR/USD could still continue higher within wave C (purple) of wave 2 (brown) if price manages to break above the resistance (orange) trend line. A break below the top of wave 1 (blue) and the support trend line means that the wave C (purple) has been completed at the recent top.

GBP/USD

4 hour

The GBP/USD is most likely building a larger retracement within a wave 4 (blue) correction. A wave 4 (blue) typically retraces back to the 23.6-38.2-50% Fibonacci levels. A break below the support trend line (blue) could spark a continuation of the downtrend.

1 hour

The GBP/USD could be extending the wave 4 (blue) correction with a WXY (orange) unless price break below the Fibs and support trend line (blue). A break above the resistance (orange) could see price retest higher Fibonacci levels of wave 4 vs 3 (blue).

USD/JPY

4 hour

The USD/JPY is most likely still in a wave 4 (orange) correction unless price breaks below the top of wave 1 (orange) which is indicated by a trend line (green). A break above resistance (red) could see price move towards the Fib targets.

1 hour

The USD/JPY could be building a wave 1-2 (green) unless price breaks below the 100% Fib level of wave 2 vs 1.

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