Forex Weekly Watch: Oct. 27 – 31, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It was another choppy and volatile week for EUR/JPY, but it looks like the pressure is still to the downside at the moment.  It may rise just a little bit higher to the top WATR area before sellers really start hopping back in, and if it does, the strong support area around the PWL is likely to continue draw in buyers (unless we get a new catalyst).

Of course, as the picture changes I have to change, so if this sideways action turns into a breakout to the upside, I may have to shut down my EUR/JPY short that I entered last week. I’ll be keeping an extra close watch on this pair.

  • WO: 137.39
  • Top WATR: 138.32
  • Bottom WATR: 136.47
  • PWH: 137.08
  • PWL: 135.20

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

This week’s chart on Guppy is pretty similar to EUR/JPY above, except the bounce is much higher to give back about half of the recent move lower.  Sellers could look to the major psychological level of 175.0 to top WATR as a strong potential for resistance, while buyers may want wait for another test lower of the bottom WATR and moving averages before hopping in long.  We may be in for another directionless week, so these areas are definitely ones to watch for GBP/JPY.

  • WO: 174.26
  • Top WATR: 175.70
  • Bottom WATR: 172.83
  • PWH: 174.03
  • PWL: 171.07

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

Unless we get new monetary policy or geopolitical catalysts this week, I think the choppy price action from last week is likely to continue.  Ranges are the plays for me this week in EUR/GBP, with the top WATR and moving averages looking like a good sell area and the bottom WATR as a potential buy area.  For shorter-term trend traders, a break of the PWL may be an opportunity to do a quick play on the trend lower.

  • WO: .7882
  • Top WATR: .7930
  • Bottom WATR: .7835
  • PWH: .7943
  • PWL: .7868

Risk Disclosure
Q3 2014 Trading Performance Review
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page