Posted by fxmars.com
EURUSD:
It looks like the price attempts to break the upper level of the orange bearish corridor from May 12. The last two candles of the price are a bit above the upper level, which creates the impression that the price might change its direction. At the same time, the stochastic oscillator is in a bearish divergence with the chart of the price, because it forms higher tops and bottoms, which is the second bullish signal we get. On the other hand, the big double top formation with tops from March 13 and May 8 is still not fully completed and it has about 30 more bearish pips to take. Such decrease would almost perfectly touch the bullish line which connects the bottoms from July 2012 and July 2013. For this reason, the current interaction with the upper level of the orange bearish corridor is crucial for the further movement of the price. A certain break through the orange level would probably change the direction of the price and it might reach the 1.36711 resistance, the already broken blue bearish trend line from 2008 and even the purple bearish line from March.
USDJPY:
With its last two bottoms the price created a bullish trend line, which in a combination with the line connecting the tops from May 12 and June 4, forms a bullish corridor. If the lower level of the corridor manages to support the price we would probably see the price reaching the resistance at 102.770 and maybe the upper level of the orange bullish corridor. At the same time, the stochastic oscillator is in a convergence with the bullish corridor, which gives additional strength to the bullish scenario. If the price breaks through the lower level of the orange corridor, we would probably see the price interacting with the support at 101.197 and eventually the further support at 100.756.
GBPUSD:
The current bullish movement of the price brought the Cable to test the area around 1.70475, which indicates the 5-years high of the pair. The increase of the price to this level happened in something like a small rising wedge formation, which according to the wedge rules should be about to break in bearish direction at any time. Furthermore, the stochastic oscillator gives a clear signal for an overbought market. These three bearish signs create the impression, that the Cable might not break its 5-years high. If the price bounces in bearish direction, we would expect it to interact eventually with the support at 1.68377 and why not with the 1.67214 support.
USDCHF:
As we have already mentioned, the situation here is pretty similar to the EUR/USD currency pair with the difference that the chart is a mirrored image to the Euro-Dollar and the double bottom formation here has more bullish pips to take – about 100 pips. As by the EUR/USD pair the price is attempting a break through the lower level of the bullish corridor from May 12 and again there is a bearish divergence between the chart of the Swissy and the stochastic oscillator, which supports the eventual bearish movement. If the price does a certain break through the lower level of the corridor, it might drop to the support at 0.88618, which indicates the neck line of the smaller double bottom formation (purple).
EURUSD:
It looks like the price attempts to break the upper level of the orange bearish corridor from May 12. The last two candles of the price are a bit above the upper level, which creates the impression that the price might change its direction. At the same time, the stochastic oscillator is in a bearish divergence with the chart of the price, because it forms higher tops and bottoms, which is the second bullish signal we get. On the other hand, the big double top formation with tops from March 13 and May 8 is still not fully completed and it has about 30 more bearish pips to take. Such decrease would almost perfectly touch the bullish line which connects the bottoms from July 2012 and July 2013. For this reason, the current interaction with the upper level of the orange bearish corridor is crucial for the further movement of the price. A certain break through the orange level would probably change the direction of the price and it might reach the 1.36711 resistance, the already broken blue bearish trend line from 2008 and even the purple bearish line from March.
USDJPY:
With its last two bottoms the price created a bullish trend line, which in a combination with the line connecting the tops from May 12 and June 4, forms a bullish corridor. If the lower level of the corridor manages to support the price we would probably see the price reaching the resistance at 102.770 and maybe the upper level of the orange bullish corridor. At the same time, the stochastic oscillator is in a convergence with the bullish corridor, which gives additional strength to the bullish scenario. If the price breaks through the lower level of the orange corridor, we would probably see the price interacting with the support at 101.197 and eventually the further support at 100.756.
GBPUSD:
The current bullish movement of the price brought the Cable to test the area around 1.70475, which indicates the 5-years high of the pair. The increase of the price to this level happened in something like a small rising wedge formation, which according to the wedge rules should be about to break in bearish direction at any time. Furthermore, the stochastic oscillator gives a clear signal for an overbought market. These three bearish signs create the impression, that the Cable might not break its 5-years high. If the price bounces in bearish direction, we would expect it to interact eventually with the support at 1.68377 and why not with the 1.67214 support.
USDCHF:
As we have already mentioned, the situation here is pretty similar to the EUR/USD currency pair with the difference that the chart is a mirrored image to the Euro-Dollar and the double bottom formation here has more bullish pips to take – about 100 pips. As by the EUR/USD pair the price is attempting a break through the lower level of the bullish corridor from May 12 and again there is a bearish divergence between the chart of the Swissy and the stochastic oscillator, which supports the eventual bearish movement. If the price does a certain break through the lower level of the corridor, it might drop to the support at 0.88618, which indicates the neck line of the smaller double bottom formation (purple).
