Remarkable wave patterns develop in Forex market

10 June, 2016

EUR/USD
4 hour

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). For the moment this dip has been marked as wave X (purple) pullback and will be invalidated if price breaks below support and the 100% Fibonacci level.

1 hour

The EUR/USD bearish momentum could be a wave 1 or wave A (blue). Once price starts to retrace the resistance Fibonacci levels and resistance trend line (red) could stop from a strong rally.

GBP/USD
4 hour

The GBP/USD showed slow and corrective bearish action which makes a wave WXY (green) pattern more likely. Price is at the 61.8% Fibonacci support level, which could cause a retracement or reversal. A break below the 100% Fibonacci level increases the chance of a long-term bearish breakout.

1 hour

The GBP/USD is building a falling wedge chart pattern, which is a bullish reversal pattern. A break below the 61.8% Fib could see price fall to the 78.6% Fib. A break above the resistance trend lines (red) could spark the start of the wave Y (pink) rally.

USD/JPY
4 hour

The USD/JPY broke above the resistance trend line (red) which could mark the start of the wave 3 (purple) but break above a strong resistance zone (orange) would confirm it. A break below the bottom (100%) invalidates the wave 1-2 (purple) structure.

1 hour

The USD/JPY seems to have completed the C wave (blue). More confirmation will be obtained depending on whether the bullish price action unfolds in 5 waves and shows decent momentum. In that case a wave 1-2 (blue) structure could be unfolding.


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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)...

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)...

EURUSD break of choppy channel

The EUR/USD broke above the resistance trend lines (dotted red), which makes it likely that a swing high and swing low was completed at the trend line...

  


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