Daily Wave Analysis for 16 October 2014

EURUSD

The EURUSD did indeed, as anticipated yesterday, bounce for a major rally at the wave X (magenta) level. This is most likely a wave Y (blue) of a wave 4 (orange), which usually ends at the 38.2 Fibonacci retracement level (blue).

4 hour EURUSD:
Price could be in an ABC zigzag (green) to complete the wave 4 (orange).

60 min EURUSD:

GBPUSD

The GBPUSD remains in a downtrend but is struggling to break the bigger weekly support level (dark green).

4 hour GBPUSD:

The GBPUSD is moving correctively and choppily to the downside. Yesterday’s spike could be a wave 2 (purple) but is vulnerable to change. For the moment the bottom (green) and resistance trend lines (red-orange) are the main “lines in the sand”.

60 min GBPUSD:

USDJPY

The USDJPY has retraced back to the 61.8 Fibonacci retracement level, which is a lot deeper retracement than a wave 4 typically does.

4 hour USDJPY:

A break below support could translate into price continuing with the downtrend; whereas a break above resistance could mean that the wave 4 is complete.

60 min USDJPY:

Original Source – Admiral Markets