Forex pairs build sturdy contracting triangles 2016.02.22

EUR/USD

4 hour

The EUR/USD has been going sideways during the last week and has not been able to break below the 50% Fibonacci level. A break above resistance could see price build a potential breakout. If it fails, then a bigger bearish retracement could commence towards the 61.8% Fibonacci level.

1 hour

The EUR/USD is showing a consolidation zone on the 1 hour chart.

GBP/USD

4 hour

The GBP/USD respected the trend line (green) and made a bullish bounce. Price is now in a contracting triangle with support (green) and resistance (orange) nearby.

1 hour

The GBP/USD is showing very choppy price action. The trend lines mark the boundaries of the contracting triangle pattern.

USD/JPY

4 hour

The USD/JPY bearish price action is moving down lower at a slow angle. A break above resistance (red) could indicate a chance for an ABC (purple) correction. A break below support (green) could price move further down towards the Fibonacci level.

1 hour

The USD/JPY has support and resistance trend lines nearby that mark potential boundaries of the triangle pattern.