Forex Weekly Watch: June 2 – 6, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Last week, the PWL was the level to play the downtrend as 139.35 held as resistance before another move lower to the bottom WATR/major pscyh level at 138.00.  When it got there, buyers jumped in to push the pair back to near breakeven on the week.  We could see the same type of choppiness until we get to the major news reports on the forex calendar this week, so look for the same levels to potentially hold until then.

  • WO: 138.96
  • Top WATR: 139.91
  • Bottom WATR: 138.01
  • PWH: 139.37
  • PWL: 137.97

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy is still in a downtrend after sellers broke out of the consolidation mid-week to take the pair below the major psychological level of 170.00.  It wasn’t until the test of minor psychological level 169.50 where buyers jumped back in to push the pair higher, potentially giving traders another Fibonacci retracement/moving average resistance setup to play this week back into the downtrend.

  • WO: 170.77
  • Top WATR: 172.01
  • Bottom WATR: 169.54
  • PWH: 171.98
  • PWL: 169.54

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

It was a consolidation break to the upside for EUR/GBP, mainly on broad Sterling weakness that’s brought the pair back to the broken support area (now potentially resistance) around .8130 – .8150.  The market being above the moving averages may signal a new leg higher, but with major central bank events for both the Euro and British Pound later this week, we may see technicals go out the window on a short-term spike in volatility.

  • WO: .8136
  • Top WATR: .8176
  • Bottom WATR: .8096
  • PWH: .8153
  • PWL: .8085

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