Another round of rallies for the European currencies? Here’s how the charts of EUR/JPY, EUR/GBP, and GBP/JPY looking at the start of this brand-new month.
EUR/JPY still hasn’t filled its gap from the previous week, hinting that bulls have so much energy to keep up the climb. A new ascending channel appears to be forming on the pair’s daily time frame and price could be aiming for the resistance at the 126.00-126.50 area.
Stochastic is on the move up but is already in the overbought region, which suggests that euro bears could get back in the game soon and that the nearby resistance at the top WATR could be enough to keep gains in check. If so, another move towards the PWL support around 119.00 could happen.
- WO: 121.47
- Top WATR: 122.69
- Bottom WATR: 120.26
- PWH: 122.00
- PWL: 118.91
Those on the long pound train might wanna take it easy from here as signs of a selloff are materializing on Guppy’s 1-hour forex chart. Price has formed higher highs while stochastic drew lower highs, creating a short-term bearish divergence that might inspire profit-taking.
If so, the pair could retreat until the nearby support at bottom WATR or the 142.50 minor psychological level. A stronger drop could push price all the way down to the PWL at the 140.00 major psychological mark. On the other hand, if pound bulls keep charging, price could break past the PWH and move on to the top WATR and beyond.
- WO: 144.17
- Top WATR: 145.78
- Bottom WATR: 142.56
- PWH: 144.51
- PWL: 140.07
EUR/GBP is halfway through filling the earlier weekend gap as the pair appears to be setting its sights on the long-term floor that coincides with the bottom WATR. After all, the U.K. currency could keep flexing its muscles against the shared currency as France gears up for the second round of presidential elections next weekend.
However, stochastic is already turnin’ up from the overbought zone, which signals that buyers are ready to get their groove back on. In that case, price could bounce back up to the nearby area of interest around the top WATR and PWH.
- WO: .8419
- Top WATR: .8495
- Bottom WATR: .8344
- PWH: .8531
- PWL: .8435
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.