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

We saw a bit of action last week thanks to US jobs data and China monetary policy news, but volatility still remains low relative to recent months. We’ve got quite a few economic events to watch this week to possibly take volatility higher, and here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

A big run up to start last week for EUR/JPY to go with the recent trend higher, but Chinese monetary policy tightening quickly brought the pair back down, in which I saw a trading opportunity to go long. The trend could continue on, but a pullback certainly isn’t out of the question. 133.50 – 134.00 are still legitimate areas for the bulls to watch, while those already in the trend want to look at 135.50 – 136.00 for a move higher to possibly slow down.

EUR/JPY 1 hour chart
EUR/JPY 1 hour chart
  • WO: 134.92
  • Top WATR: 136.18
  • Bottom WATR: 133.66
  • PWH: 135.51
  • PWL: 133.59

GBP/JPY

Guppy is back to the middle of a range that’s been going on since mid-September. 158.00 seems to be a magnet as of late, so a break from the current levels could easily be +100 pips in either direction before finding support or resistance. The market has been in an uptrend over the last two weeks with the exception of a fast pullback on Chinese news. Will October’s trend higher resume?

GBP/JPY 1 hour chart
GBP/JPY 1 hour chart
  • WO: 157.99
  • Top WATR: 159.53
  • Bottom WATR: 156.45
  • PWH: 159.54
  • PWL: 156.86

EUR/GBP

EUR/GBP made new highs with ease since bottoming out at the end of September around .8300. The trend is higher, so a pullback to .8500 could attract new buyers into the mix, or a break above .8560 could mean current bulls may add more. .8600 would a good area for patient bears to start looking because the longer-term trend since the summer has been to the downside and that was an area of major support/resistance.

EUR/GBP 1 hour chart
EUR/GBP 1 hour chart
  • WO: .8539
  • Top WATR: .8591
  • Bottom WATR: .8488
  • PWH: .8556
  • PWL: .8449

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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.