US Dollar dramatic close and reverse

4 May, 2016

EUR/USD
4 hour

The EUR/USD reached the 61.8% Fibonacci target before showing a 'close and reverse' formation which sparked strong bearish price action. However, the support trend line (green) needs to break before the waves Y of wave 4 (blue) can be considered completed.

1 hour

The EUR/USD did not break the outer support trend line (solid green) but it did break below the inner support trend line (dotted green) which makes it likely that a wave 5 of wave C has been completed. For the moment a bearish ABC zigzag (pink) seems the most logical path of least resistance for price. The wave count could turn into a 123 if price breaks below support.

GBP/USD
4 hour

The GBP/USD also is showing the same pattern as the EUR/USD. Also this currency pair was in a strong uptrend but reversed strongly during yesterday's trading and broke the inner trend line (dotted green).

1 hour

The GBP/USD is showing strong bearish momentum which makes an ABC (purple) zigzag the most logical pattern for the moment.

USD/JPY
4 hour

The USD/JPY is showing a strong bullish bounce after breaking a resistance trend line (dotted red). The bullish price action could be a first signal that the US Dollar can make a decent rally.

1 hour

The USD/JPY completed a 5th wave (orange) as indicated in yesterday's wave analysis before breaking the trend line. The subsequent bullish momentum has been labeled as a wave A but also could turn out to be a wave 3 if price can break above the 100% Fibonacci target.


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Rising wedges signal completion

The EUR/USD has broken long-term support levels (dotted green) but still has important and decisive horizontals levels to break before a wave 5 (blue) of wave C (purple) can be confirmed...

Impact Brexit vote on Forex market

The GBP/USD managed to break the resistance trend line (dotted red) despite the British vote on the EU membership taking place today (Thursday June 23rd). The bullish price action is most likely reflecting a reaction towards the opinion polls...

Major currency pairs smack into barrier of resistance

The EUR/USD has made a slight bearish bounce at the resistance trend line (red). The bullish momentum, however, is still in control and a breakout could see price move towards the Fibonacci levels. Of course, all currency pairs will be impacted by the British vote on Thursday June 23rd...


Major currency pairs reach key Fibonacci levels

The EUR/USD broke the support trend line (dotted green) after yesterday's strong bearish 4 hour candle appeared. From a long-term perspective price is still above key support such as the daily trend line (solid green)...

Remarkable wave patterns develop in Forex market

The EUR/USD did not manage to break above the 61.8% Fibonacci resistance level and instead broke below the support trend line (dotted green). This bearish breakout has seen strong momentum but price is still above long-term support (green)...

Strong bullish price action remains leading factor

The EUR/USD retraced back to the 23.6% Fibonacci level of wave B (orange) and could now be building a channel (red/blue). A break below the channel could indicate that price is retracing back to the 38.2% Fibonacci level...


Majors dominated by robust downtrend channels

The EUR/USD is pausing at the 100% Fibonacci level of wave C versus wave A. Wave C (blue) corrections are typically equal to the length of wave A so a break below the 100% Fib target increases the likelihood of a potential wave 3 (purple)...

Key triangles visible on 3 major Forex pairs

The EUR/USD broke below the horizontal support (dotted blue) as the bearish channel maintains its momentum to the 100% Fibonacci level. Wave C corrections are typically equal to the length of wave A so a break below the 100% Fib target increases the likelihood of a potential wave 3...

EURUSD, GBPUSD respect 38.2% Fibonacci level and build triangle

The EUR/USD broke the internal resistance trend line (dotted orange) and made a move up to the 38.2% Fibonacci level of wave B (blue). Price is now challenging the long-term support trend line (green)...

  


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