Forex Weekly Watch: June 6-10, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Looks like the top of the falling wedge I showed y’all last week held like a boss! Dovish ECB rhetoric and yen strength combined forces for a selloff so the pair is now testing support, which is near the week open price and previous week low. A break below this area could lead to a move toward the bottom WATR or much lower while a bounce could spur a rally to the wedge resistance near top WATR.

  • WO: 121.04
  • Top WATR: 122.30
  • Bottom WATR: 119.78
  • PWH: 124.40
  • PWL: 120.81

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

The British pound was like the Cleveland Cavaliers in the first two games of the NBA Finals, as it just couldn’t score a win! Guppy eventually broke below the support of the ascending triangle I’ve been watching and I’m feeling really bummed out about deciding to close my short position early. With this breakdown, the pair could be poised for more losses, possibly by at least a thousand pips or the same height as the triangle. Better keep tabs on Brexit-related updates when trading this one!

  • WO: 154.61
  • Top WATR: 157.24
  • Bottom WATR: 151.98
  • PWH: 163.90
  • PWL: 154.73

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Time for a reversal on EUR/GBP? My short trade got stopped out when the pair broke past the descending trend line connecting the latest highs on the 4-hour time frame, signaling that an uptrend might take place from here. As it turns out, the higher odds of a Brexit outweighed euro weakness after the latest ECB statement. Price could still pull back to the broken trend line before resuming its climb since stochastic is already in the overbought territory.

  • WO: .7883
  • Top WATR: .7966
  • Bottom WATR: .7801
  • PWH: .7823
  • PWL: .7573

Q1 2016 Trading Performance Review
Risk disclosure
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page