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I’ve got my one good eye locked on the nearby resistance levels for EUR/JPY, GBP/JPY, and EUR/GBP to see if trends would resume or breakouts might happen.

EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

This pair wound up bouncing off the descending channel support after a couple of tests last week, making its way back towards the resistance.

Stochastic seems to be hinting that euro bears are ready to flex their muscles once the ceiling is tested, so the pair might be able to resume its selloff back to support near 131.00.

Take note, however, that euro zone data has been mostly upbeat last week so bulls have enough energy to push higher. If price clears the 133.50 minor psychological barrier, a reversal from the downtrend could ensue.

  • WO: 133.07
  • Top WATR: 134.05
  • Bottom WATR: 132.10
  • PWH: 133.34
  • PWL: 131.17

GBP/JPY

GBP/JPY 1-hour Forex Chart
GBP/JPY 1-hour Forex Chart

Guppy found support at the mid-channel area of interest and bounced right back up for a test of the resistance near the 149.00 handle.

Sellers were waiting to strike at that area, though, keeping gains in check for the meantime. Also, stochastic is turning lower from the overbought zone to reflect a return in bearish momentum.

This could take the pair back down to support near 147.00 or at least until the recent lows around 147.85. Apart from the usual slew of Brexit updates, pound pairs also have to contend with event risks like the U.K. bank stress test results, the BOE Financial Stability Report, and the manufacturing PMI this week.

  • WO: 148.64
  • Top WATR: 149.91
  • Bottom WATR: 147.38
  • PWH: 149.37
  • PWL: 147.64

EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 4-hour Forex Chart

Bulls seem to be gaining traction after this pair bounced off the area of interest at the middle of its range. Price is now setting its sights on the ceiling close to the .9000 mark, which might put the climb to a halt for the time being.

After all, stochastic is already indicating overbought conditions, which means that it’s high time for buyers to take a break and book profits. If so, the pair could head back down to the nearby support levels or all the way down to the range bottom at .8775.

Think I should adjust my stop on my long position already?

  • WO: .8950
  • Top WATR: .9020
  • Bottom WATR .8881
  • PWH: .8962
  • PWL: .8842

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.