Weekly Watch: Oct. 10-14, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Looks like the other week’s breakdown was a fakeout! EUR/JPY pulled right back up to the 116.00 handle in the past few days, signaling that bulls still have enough energy left in them. Price could be in for sideways movement from here since it appears to have its sights set back on the range support around the 112.70 area. However, stochastic is on its way north so the pair could follow suit, probably making a quick pullback to the area of interest at the bottom WATR before resuming its climb.

  • WO: 115.48
  • Top WATR: 116.77
  • Bottom WATR: 114.20
  • PWH: 116.29
  • PWL: 113.61

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

That pound flash crash sure did a number on Guppy! Or was it a fat-finger trade? Either way, price dropped sharply to record lows before pulling right back up to the 128.00 area, which lines up with the 50% Fib retracement on the dive. A higher correction could last until the broken long-term support near this week’s top WATR, although it seems that price is ready to carry on with its slide. Then again, a bit of consolidation could be in the cards as pound traders try to piece together what’s next for the U.K. economy.

  • WO: 128.08
  • Top WATR: 130.56
  • Bottom WATR: 125.60
  • PWH: 132.23
  • PWL: 123.66

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Saddle up, euro bulls! EUR/GBP surged past its ascending channel, indicating that the pair is ready for a sharper and faster climb. Price could still retreat to the broken channel resistance near the bottom WATR while stochastic is moving down and traders book profits off their recent long positions. If the .8900 area hold as support, buyers could hop in and allow the pair to slowly make its way back up to the PWH or at least the top WATR.

  • WO: .9091
  • Top WATR: .9125
  • Bottom WATR: .8913
  • PWH: .9359
  • PWL: .8677

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