Forex Weekly Watch: Aug 1-5, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Looks like the longer-term downtrend is still intact for EUR/JPY, as the pair found resistance near the descending trend line and is resuming its drop. If euro bears stay on top of their game, a move towards the lows at 111.00 could be seen or at least until the bottom WATR near the 112.50 minor psychological level. There’s not much in the way of top-tier reports from the euro zone or Japan this week, though, so consolidation could also be possible.

  • WO: 114.22
  • Top WATR: 116.00
  • Bottom WATR: 112.44
  • PWH: 117.15
  • PWL: 113.87

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Pound bears might need to take a quick break as Guppy is already testing the bottom of its descending channel on the 1-hour chart and stochastic is indicating oversold conditions. A bounce could take it back to the resistance around the 137.00-137.50 levels, which might keep gains in check ahead of the BOE interest rate decision. Any significant changes in policy bias could mean strong moves for this pair so make sure you watch out for potential channel breakouts as well!

  • WO: 135.25
  • Top WATR: 138.71
  • Bottom WATR: 131.79
  • PWH: 140.13
  • PWL: 134.93

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Consolidation is the name of the game for EUR/GBP, although euro bulls seem to be pressing higher as a rising wedge pattern can be seen on the pair’s short-term charts. For now, price is finding resistance at the top of the formation and could be due for a test of support near the .8400 handle. A break below that level could lead to a drop to the bottom WATR and PWL areas, depending on the outcome of this week’s top-tier U.K. events.

  • WO: .8445
  • Top WATR: .8538
  • Bottom WATR: .8352
  • PWH: .8478
  • PWL: .8338

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