Forex forecast: high probability of key trend line breaks 2016.05.10

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.