EUR/USD Builds Wedge and Offers Clear Bull-Bear Mark 2015.06.02

EUR/USD

4 hour

The EUR/USD is in a contracting wedge, which is indicated by the support (green) and resistance (red) trend lines. A break of these lines could indicate a potential movement towards the support or resistance.

1 hour

The EUR/USD wave count still labels the bullish price action as a wave 1-2 but this will invalidated if price breaks below the support line (green). Price needs to break above the resistance (red) and accelerate to the Fibonacci targets to confirm a potential wave 3 (orange).

GBP/USD

4 hour

The GBP/USD keeps pushing lower and lower and remains solidly rooted in a downtrend, although divergence is present (purple line).

1 hour

The GBP/USD remains firmly anchored in the downtrend channel after yesterday's break of the support trend line (dotted green). Price could make one more fall as part of wave 5 (orange) but a break of the downtrend channel indicates that the downtrend has been completed.

USD/JPY

4 hour

The USD/JPY has reached the psychological round level of 125 which could be a strong resistance. If price does retrace then the channel and broken resistance (green line) could provide support again. A break above 125 could see price move towards Fibonacci targets.

1 hour

The USD/JPY had a small sideways corrective zone with 3 internal legs which completed wave 4 (magenta).