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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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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.