EURUSD:
The first thing we notice on the D1 chart by the EUR/USD is the bearish divergence between the graph and the Stochastic oscillator. The tops from April 11 and May 8 are in an ascending order on the graph, while the Stochastic Oscillator has arranged them in a descending order. This was the basic sign for the big bearish drop in the last two days, which also brought the price through the lower level of the purple triangle. For this reason, the first break out of the triangle might appear to be false. Now the price is testing the already broken blue 6-years bearish line as a support. If the price breaks through the blue bearish line, we might see a decrease to 1.36714 support, which is also a neck line of the head and shoulders formation with tops from March 13 and May 8. If the price bounces from the blue bearish trend line, the first break through the triangle might appear to be real (not fake), and the price might continue its overall bullish movement, where the next decent resistance is the 1.39900 line, which indicates the top from May 8.
USDJPY:
The price did a bearish break through the purple 1-year bullish trend line, which is also the lower level of the purple symmetrical triangle from the beginning of January. The break also covers the smaller yellow ascending triangle, which was the last location of the price. After this significant break, it would be likely to see a decrease of the price to the 101.197 red support, which connects the last few bottoms of the price. At the same time, the signals of the Stochastic Oscillator are in a contradiction with the events we already mentioned. After interacting with the level 20 line, the blue line of the indicator has crossed the red dotted line in bullish direction, and the indicator has bounced in bullish direction. For this reason, we believe that the price might still drop to the 101.197 support and then it could start seeking bullish movement, which would also satisfy the signals of the Stochastic Oscillator. If this happens, the next resistances the price would meet are the already broken purple bullish trend line and the green 102.770 resistance.
GBPUSD:
The cable shows us a beautiful bearish divergence between the chart and the Stochastic Oscillator, which has already started pushing the price toward a downward movement. Maybe the price would satisfy the false-broken yellow rising wedge formation from April 10 after all. Currently, the price is testing the already broken 1.68377 resistance as a support. This is a level, which was tested on February 17, April 10, April 17 and April 23 and it stood the pressure of the price. Now the level is broken and the price is testing it as a support. If the price bounces from the 1.68377 support, we might see a movement at least to the previous top of the price at 1.69820. If the price breaks the 1.68377 support, the rising wedge formation might gets completed and we might see the price interacting again with the lower level of the blue bullish corridor from the end of September 2013.
