Weekly Watch: Nov. 25 – 29, 2013

Weekly Watch: Nov. 25 – 29, 2013

As expected, last week packed a volatile punch for forex traders, but this week looks to be a bit more calmer with a relatively light calendar lineup. See how we could play this potential change in behavior by checking out this week’s levels to watch!

EUR/JPY

Yen bears took control last week, selling big time against most of the currency’s counterparts. EUR/JPY has already popped higher at the start of this week’s session, but without major events on this week’s calendar for either currency, the run higher could temporarily run out of steam this week. A pullback lower could bring in late buyers to establish support around 136.00 – 137.00, while a move higher to top WATR (138.48) may be limited, since many Yen sellers may likely be in a position already.

EUR/JPY 1 hour chart: 20131125

EUR/JPY 1 hour chart

  • WO: 137.20
  • Top WATR: 138.48
  • Bottom WATR: 135.93
  • PWH: 137.31
  • PWL: 134.10

GBP/JPY

After a shallow pullback, guppy rallied massively (without me unfortunately) to the tune of nearly 400 pips! What’s up for the pair this week? Well, Sterling has been one of the best performing currencies so the odds are of a push higher, but with only a couple of tier 1 catalysts, 165.00 may be its home for the week. Reversals at the WATR levels (especially bottom) may be something to watch out for in the short-term.

GBP/JPY 1 hour forex chart: 20131125

GBP/JPY 1 hour forex chart

  • WO: 164.39
  • Top WATR: 165.88
  • Bottom WATR: 162.91
  • PWH: 164.26
  • PWL: 160.41

EUR/GBP

Sterling buyers continue to take advantage of any pullbacks in favor of the euro, creating lower highs toward that major support area around .8300. That’s the level to watch for the week, and if it doesn’t hold, it could be attractive for momentum players to jump in and push this pair lower to .8200 over the next few weeks. If .8300 does hold, look for a shallow bounce to the .8350 – .8375 area if the overall market story stay the same.

EUR/GBP 1 hour forex chart: 20131125

EUR/GBP 1 hour forex chart

  • WO: .8349
  • Top WATR: .8404
  • Bottom WATR: .8294
  • PWH: .8415
  • PWL: .8315

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  • mad4fx

    I’d keep an eye on the EURAUD. This pair is at an important resistance level, where you’d see a lot of the big traders take the bearish odds with the right sell signal. Stochastic and RSI are near extremes. A nice sell signal would put the odds in my favor. Happy Trading!

    • cyclopip

      Nice call mad4fx! Did you short at 1.5000? It looks like there were a ton of sell orders there because it only need one touch to reverse!