Forex Weekly Watch: July 21 – 24, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It was another risk aversion week for the financial markets, partly due to geopolitical events across the globe.  Geopolitical catalysts are tricky situations in terms of how long their influence will last, but for now, the downtrend is intact and for me pullbacks are new opportunities to jump in the trend.

Last week, the market responded well to the moving averages as dynamic resistance, so if there is a another retest in that area, there’s a good chance sellers will take notice and act–if overall story remains the same.  A break of the PWL is also a setup that’ll be on my watchlist with the bottom WATR as a possible support area this week.

  • WO: 137.08
  • Top WATR: 137.88
  • Bottom WATR: 136.29
  • PWH: 138.45
  • PWL: 136.71

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Despite risk aversion behavior that favored the Japanese Yen last week, the 172.50 -173.00 area held as I mentioned in last week’s Weekly Watch.  I’d be cautious with taking any Japanese shorts with geopolitics holding down risk taking behavior, but it’s something I’ll consider all the way down to 172.00, near where the bottom WATR lies. And if the recent geopolitical catalysts continue to be the main drivers, a retest of the top WATR area MIGHT be interesting for me with a small position since it’s long-term countertrend.

  • WO: 173.17
  • Top WATR: 174.26
  • Bottom WATR: 172.09
  • PWH: 174.55
  • PWL: 172.68

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

The downtrend in EUR/GBP just won’t stop!  The fundamental drivers of an improving U.K. economy and weak European economy is still driving the pair lower.  Will we see another drop this week? I’m not sure, but the forex calendar is packed with data from both economies so there’s bound to be some action.  For now, I’m still biased with the downtrend, so if there’s a pullback/retest of the the Fibs and top WATR area, then I’ll look for any resistance to possibly take a nibble.

  • WO: .7915
  • Top WATR: .7955
  • Bottom WATR: .7876
  • PWH: .7981
  • PWL: .7888

Risk Disclosure
Q2 2014 Trading Performance Review
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page