Weekly Watch: Oct. 14 to 18, 2013

Weekly Watch: Oct. 14 to 18, 2013

A big shift in risk sentiment last week has created new setups and opportunities. Here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

131.50 to 132.00 was the bottom for the week as sentiment shifted back to risk-on, which is definitely not a good thing for the Japanese Yen. This week, that area is still the bottom of what could be a new range, while the September highs may be the cap for EUR/JPY bulls. A break of 133.60 may take’em there.

EUR/JPY 1 hour

EUR/JPY 1 hour

  • WO: 133.09
  • Top WATR: 134.45
  • Bottom WATR: 131.74
  • PWH: 133.60
  • PWL: 131.13

GBP/JPY

Like EUR/JPY above, sentiment took a turn last week with traders wanting to get out of the Yen. Is this just the first leg of a new move higher, or a retracement in the recent down trend? For you bulls, a hold above 157.00 is the key to a possible move to September highs around 159.50. The bears might want to wait for just a bit more retracement or break below the 157.00 major psychological area.

GBP/JPY 1 hour

GBP/JPY 1 hour

  • WO: 156.79
  • Top WATR: 158.43
  • Bottom WATR: 155.15
  • PWH: 157.53
  • PWL: 154.71

EUR/GBP

EUR/GBP stair stepped higher last week, so the probability is to the upside if the market story stays the same. In that case, a sustained move above the major psychological level of .8500 may be an invitation for the bulls to push higher. But this is a pretty important week in the markets, and if sentiment shifts again to the bear side, .8500 – .8550 may be the kill zone!

EUR/GBP 1 hour

EUR/GBP 1 hour

  • WO: .8491
  • Top WATR: .8545
  • Bottom WATR: .8437
  • PWH: .8510
  • PWL: .8424

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+