Weekly Watch: Nov. 7-11, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Just when I thought that EUR/JPY was already making its way down from the range resistance area, the 114.00 handle held as support and the pair kicked off the week on a strong note. With that, price could make another attempt at testing the top of the range near the 116.00 mark and the top WATR while stochastic is on the move up. However, the outcome of the U.S. elections and resulting risk sentiment could determine if a bounce or break is in order.

  • WO: 115.16
  • Top WATR: 116.34
  • Bottom WATR: 113.98
  • PWH: 115.68
  • PWL: 114.01

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Guppy was finally able to break out of its tight consolidation and is now hovering around the broken support at 130.00. A larger correction from the ongoing downtrend could last until the 50% Fibonacci retracement level, which is closer to the descending trend line. Stochastic is already indicating overbought conditions so pound bears might force the pair to return its recent gains at some point, probably triggering a move towards the PWL or until the swing low near the bottom WATR. More bullish momentum stemming from the British High Court ruling last week could lead to a break past the 133.00 area.

  • WO: 126.60
  • Top WATR: 128.68
  • Bottom WATR: 124.52
  • PWH: 129.45
  • PWL: 126.50

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

A reversal from EUR/GBP’s climb last September seems to be in order, as the pair completed a double top formation on its 4-hour chart. Price is still testing the neckline support around the .8900 handle and PWL, with a breakdown likely taking it lower by 150 pips or the same height as the chart pattern. Stochastic is turning up from the oversold zone, though, so a bounce back to the resistance at the .9050 minor psychological level is possible.

  • WO: .8882
  • Top WATR: .8978
  • Bottom WATR: .8786
  • PWH: .9049
  • PWL: .8857

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