EUR/JPY
Is it time for a major correction? EUR/JPY gapped down over the weekend and seems ready for more losses after the Italian referendum resulted in a “No” victory for constitutional reform. Stochastic is turning down from the overbought zone to show that sellers have the upper hand right now. The 61.8% Fib level lines up with a former resistance area around the 116.00 levels, which might hold as support moving forward, but stronger selling pressure could lead to a drop towards the floor near 113.00.
- WO: 120.68
- Top WATR: 121.95
- Bottom WATR: 119.42
- PWH: 121.89
- PWL: 118.54
GBP/JPY
Guppy’s short-term uptrend still seems to be intact and price looks ready to pull back to the ascending trend line on the 1-hour chart. The 61.8% Fib, in particular, could keep losses in check as it lines up with the trend line, the bottom WATR, a former resistance area, and the 141.00 major psychological level. The pair could bounce back to the swing high at the PWH from there or onto the top WATR close to 146.00. Better keep tabs on Brexit-related headlines if you’re trading this one, though!
- WO: 143.64
- Top WATR: 145.97
- Bottom WATR: 141.32
- PWH: 145.20
- PWL: 138.52
EUR/GBP
Pound bulls stepped on the gas in the race against the euro, as it broke below the descending channel support highlighted in my previous Weekly Watch and also the longer-term ascending trend line visible on the 4-hour chart. Price seems to be making its way towards the bottom WATR from here but stochastic is already dipping into the oversold region to suggest that a pullback might be possible.
- WO: .8380
- Top WATR: .8482
- Bottom WATR: .8279
- PWH: .8578
- PWL: .8370
Q3 2016 Trading Performance Review
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