US Dollar Builds Consolidation Zone Prior to NFP

EUR/USD

4 hour

The US Dollar (USD) is building a consolidation zone before the important Non-Farm Payroll (NFP) and unemployment rate data from the United States. The NFP news event could lead to increased volatility during and after event which could potentially break the price range.

The EUR/USD specifically is challenging the support level of the sideways consolidation zone (blue/red). The breakout direction could be critical for the direction of the EUR/USD but be aware of new support (green line) and resistance (Fibonacci levels).

1 hour

The EUR/USD sideways zone is offering multiple support and resistance trend lines that could play a key role in any breakout or continuation of the consolidation.

GBP/USD

4 hour

The GBP/USD continues to move within a contracting triangle chart pattern (red/blue lines). A break below support (blue) could see price challenge the 61.8% Fibonacci level of wave X vs W (blue), whereas a break above resistance (red) could see price complete wave E (green) most likely near 1.27.

1 hour

The GBP/USD is also building a shallow angled bullish channel (orange/blue lines). The break of the channel could indicate the new direction the GBP/USD.

USD/JPY

4 hour

The USD/JPY is building a descending wedge chart pattern (orange/green lines). A break below support (green) could see price challenge the 50% Fibonacci support level of wave 4 vs 3 (purple). A break above resistance (orange) could expand wave B (brown).

1 hour

The USD/JPY trend lines could play a critical role in any breakout. The wave count favours a wave 5 (orange) within wave C (purple) at the moment.

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