Forex Weekly Watch: Apr. 14 – 18, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

As I mentioned in last week’s Weekly Watch, it was a risk-off type of week but buyers were in the waiting just a few ticks above the major psychological level of 140.00.  The latter half of the month tends to be much more calm, so the odds are we may not get another strong move lower, and shifting into rangebound behavior.  For me, I’m watching the WATR and Previous Week High/Low levels for potential reversal plays unless we get a big catalyst to spark volatility.

  • WO: 140.67
  • Top WATR: 141.83
  • Bottom WATR: 168.42
  • PWH: 141.89
  • PWL: 140.08

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Last week, I mentioned I was looking for a retest of the major psychological level, 170.00.  I didn’t get it until the end of the week, so now it’s time to take a look at this market for a potential trade setup.  On the higher time frames, this area coincides with a rising trendline, so the bulls have a decent chance of holding this area.  But if breaks (or if the mix of WATR, PWH and MA’s is retested and holds), it’s a long drop to the next major support area between 164.00 – 165.00. With the pair consolidating, it could go either way with the right news/data event.

  • WO: 169.89
  • Top WATR: 171.37
  • Bottom WATR: 139.52
  • PWH: 171.63
  • PWL: 169.50

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

For EUR/GBP, we saw another confirmation that the longer-term downtrend is holding as sellers held the .8300 handle.  For me, as long as the market remains below this area, I think EUR/GBP will continue to attract sellers.  And a retest of the PWH makes for an attractive opportunity to jump in the trend, but beware that there are major U.K. economic data points this week on the calendar that could blow technicals out of the water!

  • WO: .8279
  • Top WATR: .8327
  • Bottom WATR: .8231
  • PWH: .8310
  • PWL: .8230

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