Forex Weekly Watch: July 27 – 31, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It was a slow grind higher for EUR/JPY last week, finally finding resistance around the top WATR.  This actually create a few different technical possibilities that include: a symmetrical triangle, potential resistance at a previously strong area of interest around the top WATR, and potential for support at the bottom WATR/PWL and strong psychological area (134.00 and previous support). With all of the technical arguments going on, I’m likely to stay away from this pair for now, but if the top WATR area is tested, I will be interested.

  • WO: 135.83
  • Top WATR: 137.39
  • Bottom WATR: 132.77
  • PWH: 136.44
  • PWL: 134.27

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

GBP/JPY moved in the opposite direction of its cousin above, but like EUR/JPY it was a slow grind move overall.  Also like EUR/JPY, there are quite a few different ways to look at the chart above.  On the bear side, failing to break strong resistance and trading below the moving averages could draw in sellers.  On the bull side, rallying hard after that steep drop early in July could be the start of a bull run and this pullback could be a buying opportunity.

I’m leaning on the bear side for now because of the U.S. equity market falling on Friday, potentially leading to broad risk off moves, but I probably won’t be interested in shorting until the resistance area between the previous resistance (top WATR/PWH) and end of June consolidation is tested.

  • WO: 191.79
  • Top WATR: 193.57
  • Bottom WATR: 190.01
  • PWH: 193.98
  • PWL: 191.66

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

This appears to be the only textbook setup this week with EUR/GBP bouncing higher from making swing lows early last week.  The pair has made a near 61% Fibonacci retracement, which in my book is an opportunity to play the downtrend in situations like this.  I’ve already pointed this setup last week, but I may have to adjust my entry orders is the top has already been made.

  • WO: .7079
  • Top WATR: .7159
  • Bottom WATR: .6999
  • PWH: .7102
  • PWL: .6937

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