Forex Weekly Watch: July 25-29, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Reversal alert! EUR/JPY seems to be done with its climb, as the pair formed a double top on its 1-hour forex time frame. Price is still testing the neckline around the week open and previous week lows, with a break lower likely to take it down by at least 200 pips or the same height as the chart formation. Stochastic is on the move up, though, so euro bulls could still take control and push price back up to the resistance at top WATR and the previous week high.

  • WO: 116.50
  • Top WATR: 118.32
  • Bottom WATR: 114.68
  • PWH: 118.47
  • PWL: 116.14

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Here’s another reversal pattern on a yen pair. Guppy seems to have formed a sketchy head and shoulders pattern with a diagonal neckline that has just been broken. Price is still pulling up for a retest of the broken support before carrying on with its drop, although support at the previous week low could still hold. Stochastic is heading north but is almost in the overbought zone, which suggests that sellers might have the upper hand soon. Gonna keep close tabs on the BOJ decision for this one!

  • WO: 139.55
  • Top WATR: 143.13
  • Bottom WATR: 135.98
  • PWH: 142.41
  • PWL: 138.36

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

EUR/GBP seems to be fading its strong triangle breakout move last Friday, as the pair has retreated to the broken resistance around the .8350 minor psychological level and area of interest. Stochastic is indicating oversold conditions, though, so buyers could step up their game and push price back up to the .8400 area or until the top WATR and PWH. Both the euro and the pound are under heavy selling pressure these days so let’s see which European currency will prevail.

  • WO: .8347
  • Top WATR: .8441
  • Bottom WATR: .8253
  • PWH: .8427
  • PWL: .8254

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