Weekly Watch: Dec. 16 – 20, 2013

Weekly Watch: Dec. 16 – 20, 2013

It’s the last week before we get into the holiday trading environment and the calendar is stacked! Stay focused and be ready by checking out the areas to watch in EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

I think the potential area of interest this week on EUR/JPY is between 140.50 – 141.00. This is where we find the bottom WATR level and previous week low, which could possibly attract more yen sellers, or even more bulls to the euro’s recent strength. If we see a break lower from this area, there’s nothing to stop sellers to take this pair to the next support area, 200 pips away around 138.50.

EUR/JPY 1 hour forex chart

EUR/JPY 1 hour forex chart

  • WO: 141.75
  • Top WATR: 142.99
  • Bottom WATR: 140.52
  • PWH: 142.83
  • PWL: 140.91

GBP/JPY

Guppy probably has the most interesting opportunities out of the three currency pairs this week; it made distinctive tops and bottoms last week, easily defining points of support and resistance.

Buyers have a nice opportunity around current levels as it tests the PWL in a longer-term uptrend. Sellers may have a play here with the lower swing high and low, but may have to be more patient as a retest of 169.00 – 170.00 is a better setup for them with high R:R potential. A break of the PWL is also an interesting play to watch this week.

GBP/JPY 1 hour forex chart

GBP/JPY 1 hour forex chart

  • WO: 168.28
  • Top WATR: 169.79
  • Bottom WATR: 166.77
  • PWH: 170.07
  • PWL: 167.54

EUR/GBP

I see a consolidation break play forming here on EUR/GBP with great R:R on both sides of the break. Again, the forex calendar has lots of potential for volatility this week, so a break and momentum move is a good possibility. A downside break is forming at the moment, and if it’s legit, look for support around the bottom WATR level, .8375. Also, on the daily chart, Big Pippin’ pointed out a potential channel formation.

EUR/GBP 1 hour forex chart

EUR/GBP 1 hour forex chart

  • WO: .8428
  • Top WATR: .8482
  • Bottom WATR: .8375
  • PWH: .8441
  • PWL: .8349

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