Forex Weekly Watch: May 16-20, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Euro bears still seem to be on top of their game, as EUR/JPY formed yet another lower high. Price seems headed for the 122.00 support area once more, possibly creating a descending triangle pattern on its 1-hour chart. The triangle support lines up with the previous week low and is just above bottom WATR so there’s a good chance it could hold, triggering another bounce to the triangle resistance.

  • WO: 122.90
  • Top WATR: 124.25
  • Bottom WATR: 121.56
  • PWH: 124.65
  • PWL: 121.96

GBP/JPY

GBP/JPY 4-hour Forex ChartGBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Pound bulls are putting up a fight, creating higher lows on the pair’s 4-hour chart. The pair seems to be aiming for the descending trend line connecting the latest highs, possibly forming a symmetrical triangle pattern. However, stochastic is on the move down so there’s still some selling pressure left, likely leading to another test of support. If it continues to hold, buyers could push for a test of the top WATR or triangle resistance at 159.50 next.

  • WO: 157.02
  • Top WATR: 159.47
  • Bottom WATR: 154.58
  • PWH: 158.49
  • PWL: 154.57

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

EUR/GBP has been moving sideways lately, but zooming into the 1-hour chart reveals that it’s actually stuck in a descending channel. Price just bounced off the bottom and might be due for a test of resistance around .7900. If that area keeps gains in check, a move back towards support near the previous week low could be seen. Take note that there are a bunch of top-tier reports lined up from the U.K. this week so breakouts could be possible, too!

  • WO: .7872
  • Top WATR: .7946
  • Bottom WATR: .7799
  • PWH: .7928
  • PWL: .7846

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