Forex Weekly Watch: Aug. 17 – 21, 2015

EUR/JPY

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

EUR/JPY came out to play last week, pushing the pair higher over 200 pips before running out of steam mid-week. This is definitely a breakout higher of the recent consolidation behavior, so the question is if more bulls will jump in this week to keep the party going?

I won’t know until we get there, but since the pair has found resistance just under 139.00 and pulling back, I’m looking for a pullback setup to the Fibonacci retracement area and bottom WATR area to see if more buyers will hop in. And without a major catalyst, the upside is likely to be limited to the major psychological level of 140.00 if tested.

  • WO: 138.12
  • Top WATR: 139.52
  • Bottom WATR: 136.72
  • PWH: 138.86
  • PWL: 136.09

GBP/JPY

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Guppy also shot higher last week, but the upside was also quickly limited, in this case by the major psychological area of 195.00 (also the previous week high area). We did see a pullback but buyers were in force to defend and hold the 193.50 – 194.00 area all week.

This created sort of mini triangle within the week (lower “highs” and higher “lows”), setting up a breakout pattern. That’s what I’ll be looking out for this week, especially a break of the strong support area (193.00), and of course the mega strong 195.00 resistance area–a break there could draw in buyers quickly given the recent bullish bias since hitting 185.00 in July.

  • WO: 194.66
  • Top WATR: 196.34
  • Bottom WATR: 190.69
  • PWH: 195.03
  • PWL: 192.29

EUR/GBP

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

EUR/GBP was also in buy mode last week, and just like GBP/JPY and EUR/JPY above, found resistance quickly and reversed back lower mid-week. For this market, it was the top of its weekly ATR range that held the bulls back, which is also the previous level high from a couple of weeks ago. The longer-term trend is to the downside, and recent months has been rangebound, which makes it likely that this is a short-term top in the works.

.7100 – .7150 will likely continue to draw in sellers without a major catalyst, and the risk-to-reward looks nice to the downside with buyers not likely to step in until the major psychological area of .7000 – .6950.

  • WO: .7096
  • Top WATR: .7173
  • Bottom WATR: .7020
  • PWH: .7170
  • PWL: .7039

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