US Dollar gains strong bullish momentum in wave 3 2016.09.19

EUR/USD

4 hour

The trend line (orange) indeed acted as resistance and the EUR/USD fell below support (dotted green) as indicated last week. A bearish zigzag seems the most likely and the current bearish momentum is wave A (green). On the larger scale a contracting triangle is probably taking place and price is now in the wave d (green).

1 hour

The EUR/USD is building a retracement within wave 4 (orange) unless price breaks above the 50% Fibonacci level, which then makes it more likely that wave A (green) has been completed at the most recent bottom.

GBP/USD

4 hour

The GBP/USD wave count is now showing a bearish impulse (pink) but the wave count is vulnerable to change if price does not break below the 78.6% Fibonacci level (blue) and breaks above resistance (red).

1 hour

The GBP/USD is building a wave 4 (blue) retracement of the impulsive wave 3 (blue). Usually price will respect the 23.6% to 50% Fibonacci levels within a wave 4. A break above the 61.8% invalidates the current wave 4 (blue).

USD/JPY

4 hour

The USD/JPY is struggling to break above the top of a daily downtrend channel (red). A break above resistance (red) confirms the end of the downtrend and the start of bullish price action. A break below the 100% Fibonacci level of wave 2 (blue) indicates that another wave 2 (purple) is still active.

1 hour

The USD/JPY could have completed an ABC zigzag (brown) within wave 2 (blue) and is now potentially starting bullish price action if price manages to stay above the trend line (green) and 100% Fibonacci level plus break above resistance (orange).

Follow @ChrisSvorcik on twitter for latest market updates