Break of Channels Spark ABC Formations in Forex

3 min read

EUR/USD

4 hour

22-07-2015eu4
The EUR/USD made a bullish recovery rally at the major support level (green).

1 hour

22-07-2015eu1
The EUR/USD broke the resistance line (orange) and made a rally which could be explained by a wave 1 or a wave A (both scenarios are plotted on the chart). A wave C would typically go to the 100% Fibonacci target whereas a wave 3 extends to the 161.8% and higher.

GBP/USD

4 hour

22-07-2015gu4
The GBP/USD is slowly correcting in what is probably a wave X (green) after which a rally for wave Ys is expected. The wave X retracement could use any of the Fibs but for now is respecting the 38.2%.

1 hour

22-07-2015gu1
The GBP/USD is building a wedge with clear support and resistance lines.

USD/JPY

4 hour

22-07-2015uj4
The USD/JPY has completed wave A (brown) and is probably making a bearish correction for wave B.

1 hour

22-07-2015uj1
The USD/JPY broke below the channel and is showing signs of bearish momentum (bigger downside candles) which could be part of a ABC zigzag within wave B (brown).

Twitter: @elitecurrensea

Please note that the update is posted with permission from Admiral Markets

Thank you

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of

🍿️ Discover your path to a 100% yearly returns over the convos with Chris Svorcik!

X