Forex Weekly Watch: Feb. 22-26, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Time for a quick pullback? EUR/JPY has been trading below a descending trend line connecting the recent highs of forex price action on the 1-hour chart. The pair is finding support at the week open and previous week low, which means that it might be ready to retrace to the 50% Fib near the top WATR and trend line. Stochastic is on the move up anyway, so a quick bounce might be in the cards.

  • WO: 125.17
  • Top WATR: 126.48
  • Bottom WATR: 123.87
  • PWH: 128.18
  • PWL: 125.00

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy is currently testing the strong support at the previous week low and the 160.050 minor psychological level, with a bounce likely to take price back up to the triangle resistance. That’s just a little below the top WATR for this week and an area of interest at the 163.00 handle, which might also be strong enough to keep further gains in check. Stochastic is heading north so buyers are in control for now but pound bears might be waiting to take over as soon as the oscillator reaches the overbought region.

  • WO: 160.55
  • Top WATR: 162.94
  • Bottom WATR: 158.16
  • PWH: 166.09
  • PWL: 160.74

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Bounce or break? The longer-term rising trend line on EUR/GBP is still holding for now but the pair may be trying to break below this support area. Price formed lower highs in the past few weeks, indicating that bullish momentum is starting to fade and that sellers are getting stronger. In addition, stochastic is heading down from the overbought area, hinting that a downside break and a reversal might be possible, especially if the bottom WATR and PWL give way.

  • WO: .7798
  • Top WATR: .7875
  • Bottom WATR: .7722
  • PWH: .7845
  • PWL: .7696

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