Weekly Watch: Oct. 7 to 11, 2013

Weekly Watch: Oct. 7 to 11, 2013

A good bit of movement in last week’s trading left some great setups for this week’s session! Here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

The lower highs continued in EUR/JPY last week, forming a trendline and a very clear area for sellers to jump into the downtrend, if the trend continues. 132.50 – 133.00 should be closely watched by sellers if retested, but if the momentum lower continues, a break below the strong support area (PWL to WO) on strong news could be the play of the week for the pair.

EUR/JPY 60 min forex chart

EUR/JPY 60 min forex chart

  • WO: 131.79
  • Top WATR: 133.17
  • Bottom WATR: 130.42
  • PWH: 133.49
  • PWL: 131.42

GBP/JPY

A big British Pound sell off last week took the pair down 400 pips to what could be an attractive area for buyers on the higher time frames. If it went any further lower to the bottom WATR and major psychological level, it would be retesting broken resistance (now support?) that held nicely back in July and August. Buyers could be watching that area very carefully to get into the longer-term uptrend at a great price. For shorter-term guppy bears, a pull back to the top WATR area brings the market to a broken support level.

GBP/JPY 60m forex chart

GBP/JPY 60m forex chart

  • WO: 155.67
  • Top WATR: 157.35
  • Bottom WATR: 154.00
  • PWH: 159.28159.95
  • PWL: 155.72

EUR/GBP

After bottoming out near the bottom of last week’s average volatility range, EUR/GBP took the bearish Pound cues and rallied to mid-September highs. This brings the market to the falling trendline in the higher time frames, so we may see consolidation before a new direction confirmation. If the bearish GBP bias is here to stay, a pullback to .8400 could attract more GBP bears.

EUR/GBP 60m forex chart

EUR/GBP 60m forex chart

  • WO: .8466
  • Top WATR: .8521
  • Bottom WATR: .8410
  • PWH: .8476
  • PWL: .8333

Risk Disclosure
Q3 2013 Trading Performance Review
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page
Join my circle on Google+