Forex Weekly Watch: June 8 – 12, 2015

EUR/JPY

EUR/JPY 1 Hour Forex

EUR/JPY 1 Hour Forex

Last week, I thought that a pullback would draw in more buyers, likely at the 135.00 major psychological level. Unfortunately for those looking for perfect setups, the market found more buy orders than sell orders at 135.14 before rocketing higher in the week.

This week, I’m looking for the same thing–a short-term pullback before buyers take control again. Using the Fibonacci retracement tool, the area between 136.00 – 138.00 looks very interesting to bulls, but the pullback may not go back that deep with the stochastic already pointing to oversold conditions and even showing a little bit of divergence with price action.

  • WO: 139.38
  • Top WATR: 141.05
  • Bottom WATR: 137.71
  • PWH: 141.04
  • PWL: 135.14

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Last week, I said that the the slow uptrend is likely to continue, and that’s what we got after an initial dip at the beginning of the week. Right now, we can see a couple of technical arguments for more buyers to jump in on a slight pullback to both the rising moving averages and the rising trendline connecting higher lows.

192.00 is the next area of potential resistance, but if that breaks, the bulls could easily take this pair to the next major psychological level of 195.00 if the broad Japanese yen sentiment continues to be strong. Look for a potential slow down of any rally around the top WATR level around 193.34

  • WO: 191.63
  • Top WATR: 193.34
  • Bottom WATR: 189.92
  • PWH: 191.94
  • PWL: 188.55

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

My area of interest from last week, .7200, was easily cut through like butter with a hot knife on the back of broad euro strength. This new shift to upside bias seems to be the play to make on euro pairs for now, and in EUR/GBP, it’s already making a pattern that calls for potential buying to jump start the week.

The pair nearly tested .7400 last week but quickly pulled back before closing out on Friday. With the pair now retracing and testing the rising moving averages, there’s an argument that this will draw in short-term traders into long positions here at the WO area. Now that .7200 is broken, it could serve as support if it’s retested, so I’ll be watching for bullish patterns in that area.

  • WO: .7273
  • Top WATR: .7352
  • Bottom WATR: .7195
  • PWH: .7384
  • PWL: .7146

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