Weekly Watch: Oct. 17-21, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Euro bears are trying to get back in the game by forming this descending channel on EUR/JPY’s 1-hour forex time frame. Price just came from a test of the resistance last week and seems to have its sights set on support around the 113.50 minor psychological mark. If that nearby floor at the 114.00 handle and PWL keeps losses in check, price could make another attempt to break past the channel resistance near 114.50. Stochastic is indicating oversold conditions so buyers could take over soon.

  • WO: 114.48
  • Top WATR: 115.72
  • Bottom WATR: 113.25
  • PWH: 113.91
  • PWL: 115.80

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy calmed down after that flash crash the other week, forming lower highs and higher lows to consolidate inside a symmetrical triangle formation. Price is nearing the peak of the pattern already so a breakout could be due, with stochastic suggesting that sellers could give way to buyers this time. If so, the pair could be in for a 500-pip climb, which is roughly the same height as the triangle formation.

  • WO: 126.82
  • Top WATR: 129.23
  • Bottom WATR: 124.42
  • PWH: 128.61
  • PWL: 124.85

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Consolidation is the name of the game for EUR/GBP these days, as price found support around .8970 and resistance at the .9050 minor psychological mark. If volatility picks up, price could break out in either direction, eyeing the PWH and top WATR as near-term resistance and aiming for the bottom WATR as support. Stochastic is on middle ground so it’s a toss-up between buyers and sellers at this point. Better watch out for the top-tier events lined up from the U.K. this week to see where this pair might go.

  • WO: .9025
  • Top WATR: .9128
  • Bottom WATR: .8922
  • PWH: .9139
  • PWL: .8967

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