Major Currency Pairs Linger in Wedge Chart Patterns 2015.08.18

EUR/USD

4 hour

The EUR/USD is in a middle of a wedge formation (trend lines green and brown). The most recent momentum was bullish and could therefore suggest a bullish wave count.

1 hour

The EUR/USD is building a slow bearish correction which resembles a falling wedge chart pattern (light orange and green trend lines).

GBP/USD

4 hour

The GBP/USD failed to break the resistance (red) yesterday which competed the wave W (orange). The Fibonacci levels of wave X (orange) and trend lines (green) are potential support levels.

1 hour

The GBP/USD broke below the support trend line (green) and could build a bigger zigzag correction within wave X (orange).

USD/JPY

4 hour

The USD/JPY is showing a rising wedge chart pattern, which is indicated by the support (green) and resistance (red) trend lines. A bearish break could price fall towards the wave C (purple) targets whereas a bullish break above the top (brown) would indicate an uptrend continuation and necessitate a wave count change.

1 hour

Price action has been behaving choppily within the tight wedge which is common for a wave B (purple) structure.