Forex Weekly Watch: Sept. 8 – 12, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

We saw big moves from the euro last week after the ECB announced a Turbo-Charged Stimulus Plan last Thursday. For EUR/JPY, that meant a big drop from the top of the sideways range to only run out of steam at the bottom of the range around 136.00. With the market below the moving averages but finding major support, it’s a tough call on how to play this pair, but what I’ll be looking for is a return to top WATR or sustained break of 136.00 for a possible short play for now.

  • WO: 135.88
  • Top WATR: 136.66
  • Bottom WATR: 135.11
  • PWH: 138.28
  • PWL: 135.81

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

The British Pound was slammed as soon as the market opened up for trading thanks to weekend news that Puts Scotland Separatists Ahead in the opinion polls. Sterling is bouncing back at the moment after the weekend gap, but that might not last given the catalyst for the bearish sentiment. I’ll be watching for resistance around the top WATR/PWL area before making a decision on making moves in Guppy.

  • WO: 169.97
  • Top WATR: 171.05
  • Bottom WATR: 168.89
  • PWH: 173.96
  • PWL: 170.98

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

We also got a big weekend gap in EUR/GBP to setup a gap fill play, but I think I’ll stay away for the moment because of the Scottish poll news this weekend. It’s really difficult to determine which way to go given that sentiment is very weak for both currencies, so I’ll stay on the sidelines for this one despite playing it pretty well last week. For now, I’ll only be watching out for a short play because if I had to choose between the two, I think Pound weakness has the better probability of being just a short-term setback.

  • WO: .7995
  • Top WATR: .8038
  • Bottom WATR: .7952
  • PWH: .7980
  • PWL: .7913

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