AUD/JPY has been moving towrds its five-month low around 78.00 forming a falling wedge pattern. The formation has 73% quality and 46% magnitude within 166 bars.
EUR/USD has continued its move to the five-month low around 1.2623, forming a Channel Down pattern on the 4H chart. The formation has 56% quality and 86% magnitude in a 67-bar period.
With indicators now oversold there is the possibility of some upside, perhaps targeting the top of the current consolidation at 1.2745 – and then if there is an upside breakout to perhaps 1.2825.
"The euro will likely remain wobbly for a while until the issue over Greece is sorted out" - Mizuho Corporate Bank (based on WSJ)
The US stock markets opened yesterday's trading session with a strong push by the bulls but the concerns regarding Greece pulled the markets to the red zone eventually. The main indices erased 40%-50% of what they gained from the beginning of the year, and things are looking more and more bearish as the days pass by.
Euro/dollar is forming reversal patterns at the lows which could indicate a bounce if confirmed. A hammer is forming on the daily and 4-hr charts.
