Forex Weekly Watch: July 4-8, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Higher lows and resistance near the 114.50 minor psychological mark… Why, that’s an ascending triangle right there! EUR/JPY is stuck in consolidation after its sharp dive the other week, as traders are probably waiting for more market clues. There are no major reports lined up from the euro zone this week, though, so market sentiment could determine which way this pair might break out or if it would keep moving sideways.

  • WO: 114.33
  • Top WATR: 116.08
  • Bottom WATR: 112.58
  • PWH: 114.81
  • PWL: 111.38

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Is that a small head and shoulders pattern I’m seeing on Guppy’s 1-hour forex chart? Price appears to be bouncing off the neckline around the week open price right now but a downside break could signal that further losses are in the cards. The chart pattern is around 300 pips tall so a break lower could send price down to 133.00, which is near the previous week low. PMI readings from the UK construction and services sectors are still lined up and Brexit-related updates could also push this pair around.

  • WO: 135.94
  • Top WATR: 139.45
  • Bottom WATR: 132.46
  • PWH: 139.01
  • PWL: 133.35

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

EUR/GBP is also stuck in consolidation for now, moving inside a rising wedge formation. Price is currently testing the resistance and may be due for a move towards support, but a breakout in either direction might also be in the cards. Stochastic is pointing down, suggesting that bears could take control, possibly leading to a test of the bottom WATR or the previous week low. The chart pattern is around 300 pips tall so the resulting breakout could be of the same size.

  • WO: .8402
  • Top WATR: .8493
  • Bottom WATR: .8311
  • PWH: .8405
  • PWL: .8154

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