Forex Weekly Watch: July 11-15, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Check out this tight consolidation on EUR/JPY! Price has formed lower highs and found support around the 111.00 major psychological level, creating a descending triangle pattern on its 1-hour time frame. The pair could be due for a breakout anytime soon since it’s already approaching the peak of the triangle. Stochastic is heading up, which suggests that buyers could win out, but this could all hinge on risk sentiment this week!

  • WO: 111.19
  • Top WATR: 112.93
  • Bottom WATR: 109.45
  • PWH: 114.52
  • PWL: 110.82

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

After making another sharp dive last week, GBP/JPY is back in consolidation mode. This could mean that sellers could use a break, which might allow price to pull up to the Fib levels marked on the 1-hour time frame. In particular, the 50% level coincides with the top WATR and the 134.00 major psychological level, which might hold as strong resistance. The BOE Inflation Report hearings and their monetary policy statement could mean more volatility for this pair midweek so watch out for those.

  • WO: 130.30
  • Top WATR: 133.82
  • Bottom WATR: 126.79
  • PWH: 136.78
  • PWL: 128.82

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

EUR/GBP made an upside breakout from its rising wedge pattern last week but is currently moving sideways, still deciding whether to continue its climb or to make a large correction. Applying the Fib tool on the latest swing high and low shows that the 61.8% retracement level lines up with the previous week low, which might be the line in the sand for any pullback. Watch out for the major events in the U.K. to see where this pair might be headed next.

  • WO: .8532
  • Top WATR: .8625
  • Bottom WATR: .8440
  • PWH: .8625
  • PWL: .8355

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