Daily Wave Analysis for 23 October 2014

EURUSD

The EURUSD break of the support trend lines (greens) could indicate a completion of wave 4 (orange) at the most recent top. In most cases however, wave 4’s take longer to compete in terms of time, which is the reason that price could be expanding a correction with WXY (purple).

4 hour EURUSD:

If the EURUSD is back into a downtrend, then price would need to accelerate below the horizontal support (green). Otherwise it could be a correction for a bounce back up.

60 min EURUSD:

GBPUSD

More confirmation is needed before it can be concluded that the GBPUSD has completed wave 4 (red). One more expanded correction is possible (wave WXY dark red).

4 hour GBPUSD:

It will be interesting to see whether price breaks or bounces at the orange and green trend lines.

60 min GBPUSD:

USDJPY

The USDJPY broke the resistance trend line (light red) which is the reason that the wave count is bullish as long as price stays above support and does retrace lower than the 61.8 Fibonacci retracement.

4 hour USDJPY:

Price is in a chart pattern named the contracting triangle. These trend lines (green and purple) will show interesting break or bounce spots.

60 min USDJPY:

Original Article: Admiral Markets