Forex Weekly Watch: Feb. 8-12, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY has been forming lower highs recently, creating a descending triangle pattern visible on its 1-hour forex time frame. Price is currently bouncing off the triangle support near the week open price and might be due for a test of the resistance just above the 130.50 minor psychological mark. Stochastic is making its way out of the oversold area, indicating that bulls are taking control, possibly even garnering enough strength to push for an upside breakout.

  • WO: 130.40
  • Top WATR: 131.58
  • Bottom WATR: 129.23
  • PWH: 132.03
  • PWL: 130.06

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Time for a pullback? Guppy appears to be finding a floor at the previous week low and 169.00 major psychological mark. If pound bears are feeling exhausted from the recent drop, they could take a quick breather to allow a correction to the 38.2% Fib and top WATR near the 171.50 minor psychological level. A larger retracement could last until the 61.8% Fib and 173.00 handle, which is close to a broken short-term rising trend line.

  • WO: 169.44
  • Top WATR: 171.51
  • Bottom WATR: 167.37
  • PWH: 174.99
  • PWL: 168.99

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Here’s another potential break-and-retest play! EUR/GBP appears to be hitting a ceiling around .7700 and the previous week high, hinting that a pullback might be in order. Stochastic is heading south anyway, which means that buyers are taking a break. Drawing the Fibs on the latest rally shows that the 50% level lines up with an area of interest near the bottom WATR and broken trend line, which might hold as support.

  • WO: .7698
  • Top WATR: .7771
  • Bottom WATR: .7626
  • PWH: .7715
  • PWL: .7526

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