EUR/USD and GBP/USD Incapable of Breaking Below Support

3 min read

EUR/USD

4 hour

22-05-2015eu4
The EUR/USD bearish momentum was strong but price is currently unable to break below the support trend line (blue). This could mean that the wave B (green) has been completed OR that a bearish correction will bring price lower via an ABC (purple). Monday’s wave analysis will tell more about which one of the two seems more likely.

1 hour

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A bearish break of support (green) could see price move to lower Fibonacci retracement levels of wave B (green). A bullish break might be choppy as resistance Fibs are nearby.

GBP/USD

4 hour

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The GBP/USD has a strong bullish candle breaking above resistance (dashed red), which could be part of the wave C (blue).

1 hour

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The GBP/USD made a bullish impulse and currently price is moving sideways which could be part of a wave 4 (orange). The impulsive 5 wave count is invalidated if price breaks below the top of wave 1 (blue line).

USD/JPY

4 hour

22-05-2015uj4
The USD/JPY is approaching strong resistance layers (red lines) and is currently moving lower, but this could be part of a wave 4 (green) which offers support at the 38.2% and 50% Fibonacci retracement levels.

1 hour

22-05-2015uj1
A break below the support trend line (blue) and bull flag (orange) invalidates the wave 4 (green).

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