Careful, euro bulls! EUR/JPY is currently the top of a symmetrical triangle visible on its 4-hour chart, still deciding whether to make a bounce or a break.
Stochastic is already indicating overbought conditions and might start to turn lower, indicating that bears could take control from here and take it down to the triangle support near the PWL.
The ECB monetary policy statement coming up this week would likely determine which way this pair could go so make sure you watch out for that!
- WO: 116.13
- Top WATR: 117.56
- Bottom WATR: 114.71
- PWH: 116.37
- PWL: 113.85
Reversal alert! Guppy is forming a double bottom pattern on its 4-hour time frame, which suggests that it’s tired from its dive. Price has yet to test the neckline near the top WATR and push past this defensive wall before confirming the potential uptrend.
Note that the chart pattern is a little over a thousand pips tall so the resulting breakout could be of the same size. U.K. reports have been turning out well so far but it could all come down to the BOE Inflation Report hearings on Wednesday.
- WO: 138.46
- Top WATR: 141.26
- Bottom WATR: 135.67
- PWH: 138.83
- PWL: 133.35
So far so good on this descending channel, as price is still hovering around the support near the PWL. A quick countertrend trade to the top of the channel could work fine but I’m inclined to follow the trend and wait for a test of the resistance near the top WATR if I’m playing this one.
Stochastic is indicating oversold conditions anyway so the support might hold for now. Still, I’m gonna keep tabs on how the central bank events from the eurozone and U.K. turn out to figure out where this pair might go next.
- WO: .8385
- Top WATR: .8476
- Bottom WATR: .8294
- PWH: .8552
- PWL: .8376
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