Forex Weekly Watch: Mar. 7-11, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Reversal alert! EUR/JPY broke through that descending trend line from the previous weeks and formed a double bottom formation on its 1-hour time frame. Price also surged past the neckline around 125.00, confirming that further gains might be in the cards. Note that the chart pattern is approximately 300 pips tall so the resulting rally could be of the same height, although it could still encounter some resistance at the area of interest near the top WATR. Stochastic is pointing down so euro bears could take control from here.

  • WO: 125.34
  • Top WATR: 126.67
  • Bottom WATR: 124.02
  • PWH: 125.56
  • PWL: 122.08

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

This one’s the line in the sand, forex fellas! GBP/JPY is already at the 61.8% Fibonacci retracement level of its latest swing high and low so a break past this area could mean that the downtrend is over. Price is stalling at a former support zone right around the previous week high and week open price, which might be enough to keep further gains in check. If so, the pair could move back to the swing low at 154.72 or until last week’s low. A break higher, on the other hand, could lead to a rally until the top WATR, which also lines up with an area of interest.

  • WO: 162.10
  • Top WATR: 164.36
  • Bottom WATR: 159.65
  • PWH: 162.45
  • PWL: 156.17

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

It looks like EUR/GBP is tired from its climb, as the pair broke below the long-term ascending trend line visible on its daily and 4-hour forex charts. This means that the pair might be in for a downtrend, but stochastic is still on the move up. A quick pullback to the broken trend line near the top WATR might take place before sellers take over, pushing EUR/GBP down to the area of interest near the bottom WATR then onto the .7500 major psychological support.

  • WO: .7732
  • Top WATR: .7807
  • Bottom WATR: .7657
  • PWH: .7898
  • PWL: .7691

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