Forex Weekly Watch: Mar. 2 – 6, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

As I mentioned last week, it was a likely that we’ll see more consolidation and that there wouldn’t be an upside break despite a positive development to the Greece bailout story. It turned out to be the case, but I’m not sure if we’ll see more consolidation with a heavy calendar this week.

I think this pair is still in a bear environment with the 135.00 – 136.00 area still drawing sellers, so I’ll be looking for both a pullback to that area and for a break of the previous week low around 133.45 for short plays. A break above 135.85 may draw in momentum buyers, but I won’t be convinced of a true breakout unless there is a catalyst for one.

  • WO: 133.97
  • Top WATR: 135.33
  • Bottom WATR: 134.21
  • PWH: 135.85
  • PWL: 133.45

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy is heading in the opposite direction of EUR/JPY, but in a slow grind higher last week. The bullish market still holds so of course, a break above the previous week high is likely to draw in the bulls for a push higher and gather steam to bring us out of the quite price action over the last couple of weeks.

If GBP/JPY dips lower–and without a major news catalyst–the area between the moving averages down, rising trendline, and the bottom WATR level area could draw in buyers of this trend at a more attractive price than current market levels.  And because of the tight grind higher, I think a break of that cluster of potential support levels would likely draw in sellers, depending on this week’s data.

  • WO: 184.76
  • Top WATR: 186.48
  • Bottom WATR: 183.04
  • PWH: 185.03
  • PWL: 182.62

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

It’s seems to be nothing but bearish sentiment for EUR/GBP, not even to take a short breather bounce before moving lower last week. Because of the strong selling price action, the area between the current market levels up to the top WATR levels should be considered attractive to sellers looking to short the pair at better prices, with the bottom WATR level and major psychological level of .7200 as a potential support area to target for shorter-term players. But once again, we do have a pretty heavy calendar and with any new surprise, technicals can go out the window.

  • WO: .7448
  • Top WATR: .7309
  • Bottom WATR: .7188
  • PWH: .7406
  • PWL: .7246

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