Forex Weekly Watch: Feb. 15-19, 2016

EUR/JPY

EUR/JPY 4-hour Forex ChartEUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

This descending channel on EUR/JPY’s 4-hour forex chart has been holding for quite some time and although I’ve already caught some pips off this one, I’m still looking for a chance to hop in again. Right now, price is testing the channel support and might be setting up for a countertrend play back to the resistance near the previous week high. Stochastic is on the move up too so euro bulls might be in control.

  • WO: 127.40
  • Top WATR: 128.69
  • Bottom WATR: 126.12
  • PWH: 130.90
  • PWL: 125.80

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Divergence alert! GBP/JPY is currently testing the descending trend line visible on its 1-hour forex time frame and might be ready to resume its drop. Stochastic made higher highs while price made lower highs, indicating a buildup in bearish pressure. In that case, the trend line and 61.8% Fib could keep gains in check and push for a move back to the previous week low near 160.00.

  • WO: 164.46
  • Top WATR: 166.80
  • Bottom WATR: 162.13
  • PWH: 170.63
  • PWL: 159.83

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Here’s another potential trend correction play on EUR/GBP. The pair has been slowly trending higher, moving above an ascending trend line on its 4-hour forex chart. Price seems to be in the mood for a pullback, possibly to the 61.8% Fib which coincides with the bottom WATR, PWL, and trend line. Stochastic is nearing the oversold area, hinting that buyers could take over soon and push price back up to the PWH near .7900.

  • WO: .7751
  • Top WATR: .7827
  • Bottom WATR: .7675
  • PWH: .7898
  • PWL: .7661

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