Forex Weekly Watch: Aug. 3 – 7, 2015

EUR/JPY

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

Forex volatility picked up last week, but EUR/JPY didn’t break out of the symmetrical triangle I pointed out early in the week. The picture has slightly changed in that we’re still seeing higher “lows,” but the resistance looks like a horizontal one around the 137.50 minor psychological area. This rising triangle pattern suggests a potential upside break, but I wouldn’t be sleeping on a downside move because of the recent downside sentiment in June. Going into watch mode for a break in this pair.

  • WO: 135.95
  • Top WATR: 137.44
  • Bottom WATR: 134.46
  • PWH: 137.32
  • PWL: 135.54

GBP/JPY

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Guppy also saw some volatility last week, but the pair continues to be a snoozer for swing traders with the strong resistance around 194.00 holding the upside momentum down. This week is likely to be different with a very heavy U.K. economic calendar this week, so I’ll likely stay away.  But if that bottom WATR area does get tested and holds, look out for a potential new forex trade idea to play the longer-term uptrend and positive interest rate carry trade.

  • WO: 193.74
  • Top WATR: 195.50
  • Bottom WATR: 191.00
  • PWH: 194.59
  • PWL: 191.03

EUR/GBP

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

The market was jumping around in EUR/GBP as well, with a strong move to the downside on U.K. strength (great for my EUR/GBP short trade), and then a bounce on broad euro strength at the end of the week.  The picture on this pair changed as well, creating a symmetrical triangle patter of higher “lows” and lower “highs.” I’m still biased to the down side, I’ll be watching for a retest of the top WATR and falling trendline marked in the one hour forex chart above to see if sellers will hold that area to play the longer-term downtrend.

  • WO: .7018
  • Top WATR: .7098
  • Bottom WATR: .6938
  • PWH: .7159
  • PWL: .6986

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