Forex Weekly Watch: Dec. 15 – 19, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

A round of risk aversion sparked big volatility for the currency crosses last week, especially with Japanese yen pairs which is usually the case for safe haven currencies. EUR/JPY dropped about 300 pips last week, eventually finding support around a strong area of interest near the end of November (146.50 area).

For the longer-term picture the trend is still higher, but if that 146.00 – 146.50 support breaks it could be a long drop for the pair without any major support levels until the 135.00 – 136.00 area. 148.00 is the current minor resistance level to watch for now, and if it breaks with a forex catalyst, 150.00 could be in the cards before the end of the week.

  • WO: 147.92
  • Top WATR: 149.13
  • Bottom WATR: 146.71
  • PWH: 149.75
  • PWL: 146.43

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy was also dominated by risk sentiment and the Japanese yen last week, and much like EUR/JPY above, it’s approach a strong area of interest around the 185.00 handle. If the 185.00 support area breaks, the next area of major support won’t come until about 181.00 – 182.00.  If it does hold and we get another quick sentiment reversal, another attempt at 190.00 is not out of the question, and a very nice potential reward-to-risk ratio.

  • WO: 186.57
  • Top WATR: 188.32
  • Bottom WATR: 184.82
  • PWH: 189.71
  • PWL: 184.98

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP has been in a choppy sideways pattern since the end of November and its trading range has been tightening up as well.  I notated the lower highs and higher lows on the one hour forex chart above, creating a symmetrical triangle and potential breakout setup.  If we get a strong catalyst from the forex calendar or surprise news, we could possibly get that breakout.  .8050 is the resistance area to watch on an upside break, while the floor on EUR/GBP may not be until .7200 if .7800 breaks.

  • WO: .7927
  • Top WATR: .7978
  • Bottom WATR: .7876
  • PWH: .7954
  • PWL: .7845

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