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EUR/USD Builds Rising Wedge Pattern at 1.0750 Resistance

January 26, 2017 05:30

EUR/USD

4 hour

The EUR/USD has reached the 78.6% Fibonacci level of wave 2 vs 1 (brown) and is also building a rising wedge chart pattern (orange/blue), which is a potential reversal signal. Another major bearish resistance level is at 1.08-1.0810 which is the 88.6% Fibonacci. A break above the 100% level would invalidate the current wave structure.

1 hour

The EUR/USD might build a bearish reversal at the 78.6% Fibonacci level but it would need to break below the support trend line (blue). Alternatively, price could still be part of a wave 4 (grey) correction if it stays above the Fib levels of wave 4 vs 3.

GBP/USD

4 hour

The GBP/USD could be building an ABC zigzag (blue) and price is approaching the 100% Fibonacci target of wave C vs A. Within wave C (blue) price seems to be building a 5 wave (orange) structure.

1 hour

The GBP/USD could be building an internal 5 wave (grey) within wave 5 (orange). A retracement within wave 4 (grey) could see a bounce at the Fibonacci levels of wave 4 vs 3, the support trend line (blue) and the previous broken top (dark blue).

USD/JPY

4 hour

The USD/JPY is building a bearish triangle (orange/blue) within a downtrend channel (red/green). The Fibonacci retracement levels of wave 4 (purple) could act as potential bullish support levels.

1 hour

A breakout above or below the triangle is needed before price could be expected to move impulsively. A bullish break would still face the resistance (red) of the channel. A bearish break could see price fall towards the 38.2% Fibonacci of wave 4 (purple).

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