Forex Weekly Watch: Aug. 10 – 14, 2015

EUR/JPY

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

EUR/JPY saw its share of volatility last week, but it was once again choppy as the pair closed the week nearly where it began.  The range continues on with 135.00 showing once again that buyers are ready and willing to jump in when tested, pushing up the market quickly on a brief retest last week.

There doesn’t seem to be any scheduled events to bring volatility outside of its recent range, so we if we do see a retest of either the top or bottom of the range, I’ll look to take small nibble positions for reversal plays.  I’m especially interested in the previous week low, which is also a major psychologically significant area of interest.

  • WO: 136.20
  • Top WATR: 137.63
  • Bottom WATR: 134.78
  • PWH: 136.70
  • PWL: 135.00

GBP/JPY

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Last week’s price action in Guppy looks to be the reverse of EUR/JPY, first popping higher mid-week before sellers taking control at the major psychological level of 195.00. There is significant economic data coming out from the U.K. this week, but unless we see game changing numbers, I’m likely to play the ranges as reversal points as well on Guppy. That means potential resistance between the top WATR level up to 195.00, and potential support around the bottom WATR level and 191.00 major psychological area.

  • WO: 192.42
  • Top WATR: 194.16
  • Bottom WATR: 190.69
  • PWH: 195.32
  • PWL: 191.99

EUR/GBP

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

The symmetrical triangle pattern I pointed out last week seems to continue to be forming with the pair  making a lower “high” around the psychologically significant level of .7100.  I’ve already taken a small nibble trade short as this area could be drawing sell orders early this week, but I’ll have to keep a close eye on this trade with monthly U.K. unemployment data coming this week. For now, with the longer-term trend lower, I think the area between .7100 – .7150 will likely draw in sell orders until this week’s top tier economic data.

  • WO: .7018
  • Top WATR: .7098
  • Bottom WATR: .6938
  • PWH: .7159
  • PWL: .6986

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