Rising wedges signal completion of wave-C zigzag in Forex 2016.06.30
EUR/USD
4 hour
The EUR/USD has broken long-term support levels (dotted green) but still has important and decisive horizontals levels to break before a wave 5 (blue) of wave C (purple) can be confirmed. For the moment a wave 1-2 (green) structure makes the most sense considering the bearish momentum in wave 1 and the corrective reaction in wave 2.
1 hour
The EUR/USD has built a bullish channel (orange/green) after breaking several resistance levels (dotted lines). All in all the angle of this channel remains shallow and hence corrective and looks like a rising wedge chart pattern. A break above the channel should see price stop at the Fibonacci retracement levels whereas a break below the support (green) should spark the breakout if the bears can keep control with good candle closes near the low.
GBP/USD
4 hour
The GBP/USD is building a bear flag (green lines) chart pattern, which has bearish implications and expects a continuation of the downtrend. A break below support could see price continue with its bearish momentum towards the next Fibonacci target.
1 hour
A GBP/USD break above the channel should see price stop at the Fibonacci retracement levels whereas a break below the support (green) should spark the breakout if the bears can keep control with good candle closes near the low.
USD/JPY
4 hour
The USD/JPY is behaving correctively as it moves away from the bottom of the downtrend channel. This makes a wave B (green) the most likely scenario at the moment. Price would need to break above the 100% Fib level before waves Y (blue/brown) can be considered completed.
1 hour
The USD/JPY is building a rising wedge (red/green) chart pattern, which has bearish implications. A break above the pattern should see price stop at the Fibonacci retracement levels whereas a break below the support (green) should spark the breakout if the bears can keep control with good candle closes near the low.
Follow @ChrisSvorcik on twitter for latest market updates