Forex Weekly Watch: Sept. 29 – Oct. 3, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

EUR/JPY switched back in to downtrend mode last week, but I’m not sure if this is a pullback in the longer-term trend or a legitimate swing in broad market sentiment.  We saw that 138.00 was a strong area of the past, so a pullback to the level may draw in support this week. For those in the bear camp, a pullback to the moving averages and top WATR level might draw in seller interest and continue last week’s momentum to the down side.

  • WO: 138.62
  • Top WATR: 139.49
  • Bottom WATR: 137.76
  • PWH: 140.21
  • PWL: 138.38

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Volatility dried up big time for Guppy last week, staying only within a 200 pip range which is below its 260 pip average range of movement.  With a busy forex calendar ahead, this could be an easy consolidation break setup, with my bias towards playing the trend higher.  I’ll be on the lookout for now on a break of the PWH, and with a busy calendar, I’ll probably wait for a move all the way down to the bottom WATR level before considering hopping in.

  • WO: 177.39
  • Top WATR: 178.71
  • Bottom WATR: 176.08
  • PWH: 178.74
  • PWL: 176.65

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

For EUR/GBP, it’s still all about that downtrend move that just keeps ticking along.  Much like the other currency crosses, volatility slowed down a bit last week, which to me, looks like a breakout setting up on the recently tested .7800 major psychological area. A breakout of .7800 and the PWL may be something to nibble on, as well as any pullbacks higher to the top WATR, moving averages and the falling trendline.

  • WO: .7814
  • Top WATR: .7860
  • Bottom WATR: .77.61
  • PWH: .7890
  • PWL: .7784

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