Without much top-tier reports lined up this week, the market focus is shifting back to Brexit-related headlines these days. Check out these potential plays on the crosses!
EUR/JPY looks ready to resume its climb as it bounced off a major area of interest visible on the 4-hour chart. From here, the pair could head back up to the resistance at the PWH and top WATR.
However, stochastic is already closing in on the overbought zone, signaling that euro bulls might want to take a break. Once this oscillator heads back south, the pair could make another test of the resistance turned support zone around the PWL and bottom WATR.
PMI readings are lined up from the euro zone economies this week, but discussions ahead of the Brexit negotiations scheduled to start in less than a month could push the shared currency around.
- WO: 124.29
- Top WATR: 125.50
- Bottom WATR: 123.09
- PWH: 125.82
- PWL: 122.56
Guppy has been trending lower for the past couple of weeks and is now moving below a descending trend line visible on the 1-hour time frame.
This falling resistance level lines up with the 50% Fib, which already seems to have held as a ceiling. In that case, price could head back down to the PWL or create a new swing low closer to the bottom WATR.
Note that Prime Minister May has a speech lined up at the start of this week and her tone could dictate the mood of pound pairs for the next few days. BOE Inflation Report hearings and the preliminary U.K. GDP release are scheduled in the latter half of the week.
- WO: 144.39
- Top WATR: 145.93
- Bottom WATR: 142.85
- PWH: 147.11
- PWL: 143.41
This pair looks set to carry on with its climb as it sets its sights on the top of the range on the 4-hour chart. However, it also seems to be encountering resistance at the area of interest around the PWH.
Stochastic is hovering around the overbought zone so bearish pressure could return at some point. If so, a move back to the support at the PWL or at the very bottom of the range closer to the .8350 minor psychological level could be underway.
- WO: .8612
- Top WATR: .8682
- Bottom WATR: .8542
- PWH: .8617
- PWL: .8458
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