Forex Weekly Watch: Mar. 14-18, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

EUR/JPY is currently stalling at the area of interest near the 50% Fibonacci retracement level and 127.00 major psychological mark, but a higher correction could be possible. The 61.8% Fib level is closer to the descending trend line visible on the pair’s 4-hour forex chart, and this might be the line in the sand in terms of a downtrend pullback. Stochastic is already in the overbought region but hasn’t turned lower yet so there might be a bit of buying pressure left before sellers take over.

  • WO: 126.87
  • Top WATR: 128.24
  • Bottom WATR: 125.50
  • PWH: 127.29
  • PWL: 123.06

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Guppy’s downtrend also seems to be intact for now, as price is testing the resistance at the PWH and area of interest around 164.00. The top WATR might also keep gains in check since this lines up with the descending trend line connecting the latest highs of forex price action. Stochastic is already indicating overbought conditions so these nearby resistance levels might hold. A break about this area, however, could mark the start of an uptrend for GBP/JPY.

  • WO: 163.86
  • Top WATR: 166.27
  • Bottom WATR: 161.46
  • PWH: 164.10
  • PWL: 159.49

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Reversal alert! EUR/GBP appears to be completing a head and shoulders pattern on its 4-hour forex chart and is ready to test the neckline support around the .7700 handle. A break below this area could confirm the potential selloff, likely taking price down by roughly 200 pips or the same height as the chart formation. Support at the bottom WATR and PWL might still hold as support, though, possibly keeping the pair in a sideways range from there.

  • WO: .7744
  • Top WATR: .7821
  • Bottom WATR: .7667
  • PWH: .7848
  • PWL: .7653

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