Contracting triangles on USD: a pause before breakouts?

EUR/USD

4 hour

The EUR/USD continued its bullish breakout to higher levels as part of an impulsive wave C (green). The resistance levels (red) and Fibonacci targets could be points on the chart where price could reverse.

1 hour

The EUR/USD seems to be in the 4^th wave (orange) of wave C (green). Price does show divergence (purple line) but price has gone sideways and has built a triangle formation. This increases the probability of a wave 4 (orange) correction taking place.

GBP/USD

4 hour

The GBP/USD is using the 61.8% Fibonacci level as support and the 78.6% Fib as resistance. A bearish break below support could indicate that the wave A (pink) is completed. A bullish bounce could see price challenge the resistance trend lines.

1 hour

The GBP/USD could already have completed the 5^th wave (pink) at the most recent top if price fails to break above resistance (red). A bullish break, however, could indicate that wave A (pink) is still in motion.

USD/JPY

4 hour

The USD/JPY remains at the bottom of the larger sideways consolidation zone (orange/green). A break below the support trend line (green) would provide more confirmation of a completed a wave E (blue) of wave X (brown) and a continuation of the wave Y (brown).

1 hour

The USD/JPY seems to be retracing back towards the Fibonacci retracement levels of wave B (blue).

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