Forex Weekly Watch: Mar. 21-25, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY has been forming higher lows so far this month, creating a short-term rising trend line on its 1-hour forex time frame. Price is still hovering close to the support area for now, still deciding whether to make a bounce or a break. A small triangle consolidation pattern can be seen so it’s a toss-up between the bulls and the bears. A break past the 126.00 handle could take the pair back up to the PWH and beyond while a move below 125.50 could lead to a test of the bottom WATR.

  • WO: 125.91
  • Top WATR: 127.28
  • Bottom WATR: 124.54
  • PWH: 127.16
  • PWL: 125.10

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

More signs of a Guppy selloff? Price came close to testing that longer-term descending trend line I showed y’all last week then a head and shoulders pattern appears to be forming now. The pair is still completing the right shoulder, though, but a move lower could lead to a test of the neckline near the bottom WATR and PWL. A break below this area could confirm that a 500-pip drop might take place. But if price rallies back to the PWH and top WATR, the reversal pattern could be invalidated.

  • WO: 161.60
  • Top WATR: 164.01
  • Bottom WATR: 159.20
  • PWH: 164.00
  • PWL: 159.05

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Looks like EUR/GBP is starting to move sideways! Price just found resistance around the .7900 handle and is now at the middle of its range on the 4-hour time frame. The pair could continue to sell off until the range support around the bottom WATR and PWL, which might keep gains in check since stochastic is already indicating oversold conditions. If euro bulls charge again, another test of the range resistance might take place.

  • WO: .7791
  • Top WATR: .7868
  • Bottom WATR: .7714
  • PWH: .7911
  • PWL: .7736

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