Forex Weekly Watch: Mar. 3 – 7, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It’s not too often for the forex markets that we have a gap in price action, but that’s exactly what we’re seeing at the start of trade this week.  EUR/JPY gapped more than 100 pips lower to start the Asia session.  The question now is, “will we see the gap close?”  And if it does, will the resistance area between the top WATR level and previous week high (PWH) bring in sellers like the previous two weeks? From the bottom of the chart, the previous week low (PWL) is definitely an area to watch as it held strongly through out February.

  • WO: 139.55
  • Top WATR: 140.77
  • Bottom WATR: 138.34
  • PWH: 141.12
  • PWL: 138.78

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Besides gapping lower like its cousin above, EUR/JPY, one important thing to notice about GBP/JPY is that the pair has been in range bound mode for the last couple of weeks.  Also, the range has been much tighter than the usual behavior in price, begging the question, “Is guppy about to breakout?”  You’ll have to check out the forex calendar to see if there are any catalysts, but it’s safe to say that 169.00 and 171.00 are the levels to watch for a momentum play if they break and the break holds.

  • WO: 169.56
  • Top WATR: 171.14
  • Bottom WATR: 167.98
  • PWH: 171.21
  • PWL: 169.05

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

Besides a few dips and spikes higher here and there, the area between .8200 and .8300 has been the home for EUR/GBP in 2014.  For now, it looks like this pattern may continue, unless we get some big news from either the Bank of England or European Central Bank–both are coming out with monetary policy decisions this week.  If we do see big, unexpected changes, then it might be a long-term breakout opportunity if forex traders are able to break through the strong support and resistance areas mentioned above. Something to watch out for at the end of the week.

  • WO: .8230
  • Top WATR: .8283
  • Bottom WATR: .8178
  • PWH: .8286
  • PWL: .8190

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