EUR/USD & GBP/USD Downtrend Lines Challenged but Remain Intact 2015.05.29

EUR/USD

4 hour

The EUR/USD has been labeled with a completed wave C (purple) and wave B (magenta), although price needs to break above the resistance trend line (red) for a confirmation of that wave count.

1 hour

The EUR/USD remains in a downtrend channel (red and light green lines) with a presence of a smaller bear flag (green and orange trend lines). The support (green) and resistance (red) are important lines whether the down trend continue or whether a reversal is more likely.

GBP/USD

4 hour

The GBP/USD has approached the confluence of support between 1.5250 and 1.51 (50%, 61.8%, 161.8%, horizontal line), which could be a bouncing spot for wave Y (blue).

1 hour

The GBP/USD is also in a downtrend channel (orange lines) and seems to be building an ending diagonal which has wave 4 (blue) overlapping in the price territory of wave 1 (blue). The invalidation level of the diagonal is the top of wave 2 (blue), which also would mean a break of the channel.

USD/JPY

4 hour

The USD/JPY's value on the oscillator is retracing (red bars), which could be a first sign that a bigger wave 4 (magenta) retracement will occur (oscillator will get close to mid line in that case).

1 hour

The USD/JPY is most likely correcting within a wave 4 (magenta).