Mid-Week Forex Review

Mid-Week Forex Review

The USDJPY, USDCHF, and GBPUSD may be setting up for a move later in the week.

Mid-Week Forex Review
Mid-Week Forex Review Getty Images

Although the currencies were slow to move earlier in the week, a mid-week move may be in the cards for these currencies.

GBPUSD

Although the GBPUSD had been moving up, it is now retracing back down to the ATR (blue plus sign) on the daily chart.  This is likely expected because the Stochastics is overbought.  However, if the weekly double top continues to hold through the end of the week, the GBPUSD could go down even further --  to test the ATR on the weekly chart.

Mid-week Forex Review - GBPUSDUSDCHF

The USDCHF has also been moving upwards and may continue up as it is seeking a level that may resist price.  The most likely area of resistance for the USDCHF is the line of white dots at .9800.  Although the Stochastics on the weekly is indicating an overbought status, price is not indicating a reversal at the moment.  With resistance immediately overhead, a test of the resistance area would be likely before the Stochastics begins to turn.  A two or three bar reversal pattern (ie evening start, doji, or hanging man) would indicate a retracement kicking off on the weekly chart to test for support before potentially continuing up.

 

Mid-week review forex USDCHF

USDJPY

The USDJPY daily chart shows that it is currently stuck between the line of white dots and the ATR (blue plus sign).  On the last test of the white dots, price was unable to break through and the Stochastics formed a lower high while price formed a higher high.  A new test for support is needed and will likely be a test at the ATR again.  The weekly chart also shows a potential for hidden divergence as price is making lower highs but the Stochastics is making higher highs.  A two or three bar reversal bar pattern would confirm the hidden divergence and signal a possible retest of the prior low. 

 

Mid-week Forex Review - USDJPY

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