Weekly Watch: Oct. 3-7, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY doesn’t seem to have established a clear downward trajectory following its downside break from the triangle pattern last week. Price dipped close to the 112.00 handle then pulled back up to retest the broken support around the 114.00 major psychological level. This area of interest could keep gains in check since stochastic is already indicating overbought conditions, but increased bullish pressure could bring the pair all the way up to the next ceiling near 116.00.

  • WO: 113.68
  • Top WATR: 114.97
  • Bottom WATR: 112.40
  • PWH: 114.19
  • PWL: 112.24

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Pound bulls are trying to put up a fight and defend the floor around the 129.50 minor psychological level. If this support area holds, Guppy could make its way back to the triangle resistance near the top WATR for this week. Stochastic seems to be on its way down, though, so the pair could take its lead and make another test of support. A selloff below the PWL could still find a floor at the bottom WATR, but the latest set of Brexit updates seems to be drawing bears back in the game.

  • WO: 130.82
  • Top WATR: 133.18
  • Bottom WATR: 128.47
  • PWH: 132.44
  • PWL: 129.65

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Euro bulls regained strength late last week, as the shared currency tried to brush off jitters from the Deutsche Bank debacle. News that UK PM May will trigger Article 50 by the first quarter of next year is currently weighing on the pound, putting EUR/GBP on track towards testing the channel resistance near the top WATR. The mid-channel area of interest seems to have held as support but be wary of stochastic nearing the overbought zone.

  • WO: .8691
  • Top WATR: .8775
  • Bottom WATR: .8601
  • PWH: .8717
  • PWL: .8590

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