Forex market builds remarkable zigzag and chart patterns 2016.05.09

EUR/USD

4 hour

The EUR/USD remains above the support trend line (solid green), which could mark the difference between a retracement (for more upside) or a reversal (for more downside). For the moment a bearish ABC (blue) pattern seems the most likely path of least resistance.

1 hour

The EUR/USD is building a descending wedge chart pattern (orange/green). The EUR/USD break above resistance (orange) could indicate the end of the ABC (blue), although the Fibonacci levels of B vs A could still play a role. A break below support (green) could indicate the continuation of an ABC zigzag towards Fibonacci targets C vs A.

GBP/USD

4 hour

The GBP/USD's has respected the 38.2% Fibonacci retracement level of wave B vs A. 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 completed an ABC (blue) within wave B (pink). A bullish break above the resistance trend line (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.

USD/JPY

4 hour

The USD/JPY is building an ascending wedge triangle chart pattern (red/blue). A bullish break of the triangle could indicate a trend change (from down trend to uptrend) whereas a bearish break of the triangle could see a downtrend continuation unfold.

1 hour

The USD/JPY attempted to break above the resistance trend line (red) but has failed several times. A successful attempt could see the continuation of wave C. The other likely wave count is the start of an impulsive wave count via 123 (purple).