Forex Weekly Watch: June 1 – 5, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It looks like that 133.00 major psychological area did manage to attract in more buyers last week, and on a combination of broad euro strength and broad yen weakness, the pair was able to make a nice run higher.

This week, a pullback should draw in more buyers, likely around the area where the bottom WATR and moving averages meet. This also happens to be the major psychological level of 135.00, so this is definitely an area to watch.  On the upside, the pair is retesting a previous resistance area that held and reversed the market mid-May. A break here could draw in more buyers, but it’s probably a good idea to wait for the break first.

  • WO: 136.28
  • Top WATR: 137.85
  • Bottom WATR: 134.71
  • PWH: 136.41
  • PWL: 133.10

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy’s rise last week was much more muted that EUR/JPY above, due to broad weakness in the British pound off of weak U.K. GDP data. Japanese yen weakness is probably much great, so the slow trend higher is more likely to continue, but if we do see the market start to trade below that rising trending and moving averages, short-term sellers may hop on this for a move to that area of previous consolidation around 188.00

  • WO: 189.83
  • Top WATR: 191.56
  • Bottom WATR: 186.31
  • PWH: 190.72
  • PWL: 187.81

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

After failing to sustain a downside break of .7100, EUR/GBP reversed higher, likely on the broad euro strength and weak pound sentiment mentioned above.  The pair has now created a Fibonacci retracement pattern in a downtrend, and it looks like there is strong resistance at the 61% (which is also the .7200 major psychological level).  With the longer-term trend to the downside, I think .7200 will continue to hold as resistance unless the fundies continue to give us weak U.K. surprises.

  • WO: .7178
  • Top WATR: .7254
  • Bottom WATR: .7102
  • PWH: .7202
  • PWL: .7056

Risk Disclosure
Q1 2015 Trading Performance Review
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page