Forex Weekly Watch: Aug. 29-Sept. 1, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Looks like that tight ascending channel on EUR/JPY is still holding like a boss! Price is testing the channel resistance at the moment and could be due for a drop back to the bottom around the 113.00 major psychological mark since stochastic is already indicating overbought conditions. A break past the PWH, however, could send the pair all the way up to the top WATR, depending on how this week’s medium-tier euro zone data turn out.

  • WO: 114.06
  • Top WATR: 115.52
  • Bottom WATR: 112.61
  • PWH: 114.28
  • PWL: 112.79

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy is still struggling to gain upside momentum, as price is stuck inside a rising wedge pattern on its 1-hour time frame. The pair is testing the resistance around the PWH for now but might make its way back to the bottom of the wedge once more. A breakout in either direction could lead to a 400-pip move, which is roughly the same size as the chart pattern. Better keep an eye out for Brexit-related headlines if you’re looking for potential catalysts!

  • WO: 133.82
  • Top WATR: 136.65
  • Bottom WATR: 131.00
  • PWH: 133.88
  • PWL: 131.17

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

This pair might still be in retracement mode since it’s still hovering between the 50% and 61.8% Fibonacci levels. A larger pullback could last until the channel support near the bottom WATR but a return in buying pressure could send price back up to the resistance around .8750 or the PWH. Stochastic is on its way up but is pointing down so it could be anyone’s game from here.

  • WO: .8525
  • Top WATR: .8616
  • Bottom WATR: .8434
  • PWH: .8680
  • PWL: .8486

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