Classic chart formations: EURUSD triangle, GBPUSD deep 78.6% retrace 2016.04.06

EUR/USD

4 hour

The EUR/USD continued with building a contracting triangle (orange/green). Price also remains above support trend lines (greens) but has strong daily resistance nearby too (red). A bullish break could see price move towards those resistance levels around the psychological round level of 1.15.

1 hour

The EUR/USD did not break below the 38.2% Fibonacci level of wave B (blue) and has continued to move sideways within the triangle chart pattern. A bearish break could see price fall towards the other support trend lines (greens) and expand wave B (blue).

GBP/USD

4 hour

The GBP/USD broke the support trend line (dotted green) of the triangle and price fell towards the 78.6% Fibonacci retracement level of wave B (pink), which caused a bullish bounce yesterday. Price is now showing a bullish falling wedge chart pattern (red/light green).

1 hour

The GBP/USD would need to break above resistance (red) before a completion of wave B (pink) is confirmed. A break below support (blue) could see price retest the bottom. A break of the 100% Fibonacci level of wave B (pink) invalidates the bullish ABC (pink).

USD/JPY

4 hour

The USD/JPY has broken the triple bottom (dotted green), which could now turn into a resistance level. The resistance trend line (red) could also provide confluence for a renewed bearish momentum towards the Fibonacci targets of wave C (blue).

1 hour

The USD/JPY is most likely retracing the wave 3 (pink) as part of wave 4 (pink).