Forex Weekly Watch: Aug. 15-19, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY seems to be tired from its selloff, as the pair is starting to move inside a short-term ascending channel. Price is currently testing the channel support and could be due for a rise to the top, which is near the previous week high. A move past that area could last until top WATR or higher, especially since stochastic is just making its way out of the oversold region. There are no top-tier reports from the euro zone or Japan to spur much volatility this week, though.

  • WO: 113.01
  • Top WATR: 114.62
  • Bottom WATR: 111.40
  • PWH: 114.03
  • PWL: 112.70

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

That Guppy descending trend line that I was looking at last week held as a ceiling, pushing price below its recent lows. Another pullback could be possible right now since stochastic is heading out of the oversold region to indicate that buyers might take the upper hand for the meantime. If the trend line breaks, GBP/JPY could climb up to the PWL and top WATR resistance at the 134.00 handle. Better watch out for the U.K. top-tier releases this week!

  • WO: 130.82
  • Top WATR: 133.96
  • Bottom WATR: 127.68
  • PWH: 133.98
  • PWL: 130.39

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Since the euro and the pound seem to be moving in opposite directions these days, EUR/GBP is forming a short-term rising trend line on its 1-hour chart. Price could be ready to retreat to the support area for now because the PWH is holding as resistance and stochastic is indicating overbought conditions. A break lower, however, could lead to a drop to the bottom WATR area of interest near .8550.

  • WO: .8640
  • Top WATR: .8732
  • Bottom WATR: .8548
  • PWH: .8652
  • PWL: .8469

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  • Cyclopip

    Did you take any GBP trades?