Forex Weekly Watch: Aug 8-12, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY is still treading lower and moving below the descending trend line on its 1-hour chart. Price looks ready for a pullback, possibly to the area of interest near the PWH, top WATR, and 50% Fib. However, stochastic is already indicating overbought conditions and might be ready to turn lower, leading sellers to take control of price action after a shallow correction.

  • WO: 113.03
  • Top WATR: 114.75
  • Bottom WATR: 111.31
  • PWH: 114.82
  • PWL: 112.32

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Here’s another potential pullback opportunity on a yen pair. Guppy is also trending lower but seems to be in the mood for a correction as well. Price could pull up to the area of interest around the 135.00 major psychological level and the descending trend line before the selloff resumes, with the top WATR and PWH serving as the line in the sand for this trend.

  • WO: 133.37
  • Top WATR: 136.67
  • Bottom WATR: 130.07
  • PWH: 136.27
  • PWL: 132.25

EUR/GBP

EUR/GBP 1-hour Forex ChartEUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Bounce or break? EUR/GBP is currently testing the top of its ascending channel after its sharp selloff during the BOE statement. Price seems to have formed a bullish flag pattern but is still waiting for euro bulls to push higher. If pound bulls take over, the pair could head back to the channel support close to the bottom WATR.

  • WO: .8477
  • Top WATR: .8569
  • Bottom WATR: .8385
  • PWH: .8504
  • PWL: .8344

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