Weekly Watch: August 20 to 24, 2012

Surf’s up homies! I just got back from the beach, where I hit the waves with my buddy Pip Surfer! I gotta say, it was dope! I could get used to living by the beach, hitting the waves, chillin’ with a Corona on one hand, staring at the sunset…

But first, gotta put in the hard work so that I can achieve my dreams! And that’s what the Weekly Watch is all about – doing the pre-market preparation that is needed to make trading easier throughout the week!

Without further ado, here are the hot levels to keep an eye on for EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY Hourly Chart

After posting higher highs and higher lows last week, could this be the start of a new trend for EUR/JPY? I suspect if we see a solid candle close above the 98.50 handle, we could see this baby rise up to set new highs and test the top WATR mark. On the other hand, if retracements are your game, we could see a ton of interest at the 97.50 MiPs or at the bottom WATR (97.00) areas.

  • WO: 98.23
  • Top WATR: 99.48
  • Bottom WATR: 97.00
  • PWH: 98.41
  • PWL: 96.94

GBP/JPY

GBP/JPY Hourly Chart

Just like EUR/JPY, Guppy steadily rose up the charts last week, and is now finding resistance at the 125.00 MaPs. A candle close above this level would signal a breakout and could mean that GBP/JPY will continue the uptrend. On the other hand, if the bears control the market, we may only see the bulls jump back in on a test of the bottom WATR at 123.70.

  • WO: 124.93
  • Top WATR: 126.16
  • Bottom WATR: 123.70
  • PWH: 124.97
  • PWL: 122.40

EUR/GBP

EUR/GBP Hourly Chart

If you’re the type who loves trading ranges, then EUR/GBP might be for you! Unlike the yen pairs, EUR/GBP did not trend last week and merely stuck within range. Could we see more of the same this week? Watch out for resistance at the PWH and for support at the PWL / bottom WATR cluster zone as the major trading zones for this week.

  • WO: .7861
  • Top WATR: .7914
  • Bottom WATR: .7808
  • PWH: .7885
  • PWL: .7812

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  • nkanven

    Hi, great analysis. please can tell me what are the meaning of:

    WO
    Top WATR
    Bottom WATR
    PWH
    PWL

    • cyclopip

      Hey nkanven, here’s what each of the acronyms stand for -

      WO – Week open
      Top WATR – Top Weekly Average True Range
      Bottom WATR – Bottom Weekly Average True Range
      PWH – Previous Week’s High
      PWL – Previous Week’s Low

      You can read more about my trading framework by checking out this post – http://www.babypips.com/blogs/