Contracting Triangles Dictating the Pace on Major Currency Pairs

3 min read

EUR/USD

4 hour

12-06-2015eu4
The EUR/USD remains positioned in a contracting wedge with resistance (red) and support (green) trend lines narrowing in on price.

1 hour

12-06-2015eu1
A bullish break would confirm the current wave count with a 4-5 (purple). Whereas a bearish break below the green support trend line would invalidate it.

GBP/USD

4 hour

12-06-2015gu4
The GBP/USD made a small retracement yesterday but has already bounced back up. It will need to break above the most recent top for any intra-day breakout potential.

1 hour

12-06-2015gu1
Price is at a break or bounce spot at the resistance trend line (red). A bullish break could see price move towards Fibonacci targets. A bearish bounce could be limited due to support nearby (blue, green trend lines).

USD/JPY

4 hour

12-06-2015uj4
The USD/JPY respected the resistance zone of trend lines (red and blue) and the 50% Fibonacci level. A bullish break above resistance could mean price will test a higher Fib. A bearish bounce could mean that price completes a bigger WXY (see 1 hour chart).

1 hour

12-06-2015uj1
Price stopped at the resistance level and could move lower to the Fib targets of wave Y (blue), depending on the direction of the breakout.

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