GU - Expanding Triangle

The last leg of subwave e will be complete with the possible retracement to 1.5990 by forming Head and Shoulder. just like subwave b

GBP/USD - Triangle formation

This is possible H4 formation

EURUSD

Support Zone Cracked:
- As we head into the last trading session of the week, the EUR/USD continues to show weakness. 1.4250 was an important pivot to maintain a bullish stance, but there is strong bearish price action hammering and cracking this support.
- If the market closes below 1.4250, it is not clearly bullish anymore in the medium term, as the RSI also breaks below 40. The market is staying in a range-bound market, seen in the last few months.
- The market is paring some of the USD-losses it put on as it was seeing negative headlines coming out of Washington regarding the pending debt ceiling vote. It is most likely going to pass, but the questions are 1) with what budget plan, and 2) how will credit rating agencies interpret the plan.
- 1.42 is the next support and also near 50% retracement of the 1.3837-1.4536 rally. Perhaps this is a level of equilibrium for the market to coast at ahead of the Tuesday debt ceiling deadline next week.
- Below 1.42, the market may be expecting a more positive resolution then it had this past week regarding the vote and budget plan.
- Whatever your expectations are, the EUR/USD is indeed range-bound right now when you look at the daily chart. Traders are in no-man’s land where prices will be contested either way, although the short-term bias is to the downside.
- We can expect some choppiness and volatility to start next week.
Bearish Outlook with Context of Consolidation:
- First of all, a break above 1.43 today can invalidate the bearish signal.
- After the debt ceiling vote, the market might turn its focus back to the Eurozone debt crisis. A push below 1.42 targets 1.40 psychological support, which is also near the July lows of daily closes.
- If the EUR/USD breaks below 1.40 after the Tuesday deadline for the debt ceiling, the market would be showing some restoration of USD-optimism in the short-term, while attention shifts back to the Eurozone debt crisi.
- The bearish outlook within the context of a bearish consolidation pattern have projections to support levels near 1.3850 and 1.3750.
- In the daily chart you can see that the market is in a consolidation pattern with a bearish bias. The RSI reflects the consolidation momentum as it remains roughly between 40 and 60.

EURCHF -

Bearish Breakout:
- The EUR/CHF is seen in the 1H chart breaking below a projected channel support. This suggests the risk aversion stemming from the eurozone debt crisis was not cleared by the EU summit last week. (The EUR/USD is rallying on the sole factor of USD-weakness)
- Note the market in the 1H chart was not able to push the RSI reading above 60 this time, and is now falling below 40, heading to 30. Bearish momentum is reviving in the short-term.
- The price level stayed below 200SMA after wavering around it, signaling a bearish takeover after a period of weak correction.
- This type of breakout is usually assessed with a swing projection, in this case to 1.13 (read on).
Bearish Targets:
- The 4H chart is analogous to the 1H chart in that the RSI failed to break above 60, and is now falling below 40. A break below 1.1518 would probably send the market back to the record low at 1.1405.
- The break of the channel in the 1H chart suggests a swing projection, which targets 1.1290-1.1300 area. This is also a 123.6% extended retracement of the correction rally from 1.1405 to 1.1890, AND is a fresh record low.

AU update - Nice Swap Pair

GBPJPY- WXY wave in building ?