Weekly Watch: Nov. 4 – 8, 2013

Weekly Watch: Oct. 28 to Nov. 1, 2013

The FOMC and weak European data caused quite a ruckus last week, creating some strong moves and new opportunities. This week is set to be an action packed one a calendar full of top economic events, so here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

Euro bulls had their butts kicked last week after weak European data sparked a broad fall of the euro against the major currencies. It was a steep, nearly 300 pip drop before the pair found support just under 133.00. Now that we’re in a new week, the question now is “where to next?” If we see a pullback higher with no new story change, 134.00 – 134.50 could be an area the momentum bears may be eyeing to jump in or get bigger in their size. With the strong quick shift to the the downside, I can’t say whether the bottom of the weekly range will draw in its fair share of bulls for support.

EUR/JPY 1 hour chart

EUR/JPY 1 hour chart

  • WO: 133.16
  • Top WATR: 134.41
  • Bottom WATR: 131.91
  • PWH: 135.46
  • PWL: 132.60

GBP/JPY

GBP/JPY went into a consolidation phase last week as evident in the one hour chart below of last week’s price action. Could this be a breakout week? With a few big events on the forex calendar, it just might be a breakout week with the right surprise. Of course, if we don’t get a surprise big enough to cause a break, which is the more likely scenario at the moment, look for the pair to stay in its current range between 156.00 – 158.00.

GBP/JPY 1 hour chart

GBP/JPY 1 hour chart

  • WO: 157.30
  • Top WATR: 158.75
  • Bottom WATR: 155.85
  • PWH: 158.32
  • PWL: 156.76

EUR/GBP

Like its brotha-from-anotha-motha, EUR/JPY, EUR/GBP saw a quick bout of weakness to close out last week’s trade. It could be a pullback in the rising trend that started around .8330 around the end of September, or it could be the start of a new leg lower. It’s tough to tell at this point, but based on the longer term trend, a retest around the .8400 may be worth a closer look for you longer term bulls.

EUR/GBP 1 hour chart

EUR/GBP 1 hour chart

  • WO: .8470
  • Top WATR: .8523
  • Bottom WATR: .8417
  • PWH: .8585
  • PWL: .8443

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