High probability of key trend line breaks

10 May, 2016

EUR/USD
4 hour

The EUR/USD is entrapped between support trend lines (green) and resistance (red). A bullish breakout could indicate a completion of the ABC (blue), whereas a bearish breakout could indicate a continuation of the C wave (blue). For the moment a bearish ABC (blue) pattern seems the most price development but it could turn out to be a 123 if price manages to extend itself below the 161.8% Fibonacci target.

1 hour

The EUR/USD price action has been choppy and price is going sideways. The trend lines capture the tops and bottoms of that sideways movement.

GBP/USD
4 hour

The GBP/USD's is respecting both the support (greens) and the resistance (reds/orange) trend lines. A break of the support trend line would confirm the downtrend on the GBP/USD whereas a bounce at support could indicate the completion of the ABC (pink) and an expansion of the uptrend.

1 hour

The GBP/USD respected the 61.8% Fibonacci level of wave 2 vs 1. A bullish break above the resistance trend lines (orange/red) could indicate a completion of wave C (pink). A bearish break below the support trend lines (green) could price expand wave A (pink) lower via a potential wave 3 (green).

USD/JPY
4 hour

The USD/JPY broke the resistance (dotted red) of the ascending triangle wedge chart pattern and price is moving higher towards the Fibonacci targets of wave C (pink).

1 hour

The USD/JPY could be building an alternative count where price is making a bullish impulsive 123 (purple) if price can extend at least past the 161.8% target. A break above the horizontal resistance (red) might be needed before a confirmation of a trend change is visible.


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Rising wedges signal completion

The EUR/USD has broken long-term support levels (dotted green) but still has important and decisive horizontals levels to break before a wave 5 (blue) of wave C (purple) can be confirmed...

Impact Brexit vote on Forex market

The GBP/USD managed to break the resistance trend line (dotted red) despite the British vote on the EU membership taking place today (Thursday June 23rd). The bullish price action is most likely reflecting a reaction towards the opinion polls...

Major currency pairs smack into barrier of resistance

The EUR/USD has made a slight bearish bounce at the resistance trend line (red). The bullish momentum, however, is still in control and a breakout could see price move towards the Fibonacci levels. Of course, all currency pairs will be impacted by the British vote on Thursday June 23rd...


Major currency pairs reach key Fibonacci levels

The EUR/USD broke the support trend line (dotted green) after yesterday's strong bearish 4 hour candle appeared. From a long-term perspective price is still above key support such as the daily trend line (solid green)...

Remarkable wave patterns develop in Forex market

The EUR/USD did not manage to break above the 61.8% Fibonacci resistance level and instead broke below the support trend line (dotted green). This bearish breakout has seen strong momentum but price is still above long-term support (green)...

Strong bullish price action remains leading factor

The EUR/USD retraced back to the 23.6% Fibonacci level of wave B (orange) and could now be building a channel (red/blue). A break below the channel could indicate that price is retracing back to the 38.2% Fibonacci level...


Majors dominated by robust downtrend channels

The EUR/USD is pausing at the 100% Fibonacci level of wave C versus wave A. Wave C (blue) corrections are typically equal to the length of wave A so a break below the 100% Fib target increases the likelihood of a potential wave 3 (purple)...

Key triangles visible on 3 major Forex pairs

The EUR/USD broke below the horizontal support (dotted blue) as the bearish channel maintains its momentum to the 100% Fibonacci level. Wave C corrections are typically equal to the length of wave A so a break below the 100% Fib target increases the likelihood of a potential wave 3...

EURUSD, GBPUSD respect 38.2% Fibonacci level and build triangle

The EUR/USD broke the internal resistance trend line (dotted orange) and made a move up to the 38.2% Fibonacci level of wave B (blue). Price is now challenging the long-term support trend line (green)...

  


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