Fri, Jun 09, 2023 @ 15:19 GMT
HomeContributorsTechnical AnalysisEUR/USD Breaks Rising Wedge And Approaches Channel Support

EUR/USD Breaks Rising Wedge And Approaches Channel Support

Currency pair EUR/USD

The EUR/USD broke below the rising wedge chart pattern (red/green) trend lines without breaking the resistance top (red), which means that the wave 2 (purple) has not been invalidated as yet. The EUR/USD is now testing the next support (blue) level which is part of a larger uptrend channel (blue/red lines).

The EUR/USD could be a in a bearish wave 3 (blue) if price manages to break below the support trend line (blue). A break above the resistance trend line (orange) could see price retest the resistance zone (red).

Currency pair GBP/USD

The GBP/USD is trying to break below the support trend line (dotted green). The bearish turn could complete the wave E (green) and start a bearish breakout. The wave E (green) could also become expanded (another WXY correction) which is why I am keeping an eye on the Fibonacci levels to see if price will bounce strongly at one of the Fibs.

The GBP/USD broke above resistance (dotted orange) and completed wave C (orange). Price in the meantime has broken below support (dotted green) and could be in a wave 3 (orange) aiming for the wave 3 vs 1 Fibonacci targets.

Currency pair USD/JPY

The USD/JPY completed a 5th wave (orange) within a larger bearish ABC zigzag (brown), which could take price down to the 50% Fibonacci retracement support level of wave 4 vs 3 (purple).

The USD/JPY managed to post a lower low to complete the expected waves 5 (orange/purple). In the meantime, price has broken above a resistance trend line (dotted orange) and is approaching the previous bottom which has now become a resistance level (dotted red). A break above that could see a wave 3 (purple) within wave A (orange).

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