Daily Wave Analysis for 21 October 2014

EURUSD

The EURUSD is correcting to higher levels as part of a wave 4 (orange).

4 hour EURUSD:

The EURUSD seems to be in a contracting wedge chart pattern (orange and green trend lines).

60 min EURUSD:

GBPUSD

The GBPUSD downtrend is very choppy and corrective and is struggling to break the bigger weekly support level (dark green).

4 hour GBPUSD:

On this chart the main trend lines of GBPUSD 1 hour chart have been placed. A break of yellow or green trend lines could indicate the direction of this week.

60 min GBPUSD:

USDJPY

The blue horizontal level (top of wave 1 green) marks the invalidation level of a potential bullish 5 wave (green).

4 hour USDJPY:

Price has reached the 38.2 Fibonacci level of wave 4 vs 3. If price does not use the Fibonacci and support trend lines (green and blue) for a bullish bounce then the alternative could be a bearish break.

60 min USDJPY:

Original Source – Admiral Markets