Weekly Watch: January 16 to 20, 2012

We got plenty of action last week, and I’m not talking about the crazy finishes we saw in UFC 142 or Kobe’s 4 straight 40-point games!

Our trio of crosses were very active and showed interest in the areas that we pointed out in last week’s Weekly Watch. Let’s see if this week’s levels get reactions from the markets!

EUR/JPY

EUR/JPY Hourly Chart

The euro wasn’t quite able to recover last week, and judging by its weak sauce performance on Friday, it’ll probably come under more selling pressure this week. That being the case, I’ll be looking for this pair to test and break the area around the previous week low and the week open. It’s flirting with this support zone as I write this! But if for some reason this pair pops up, I’ll be keeping my eye on 98.50 to act as a resistance area.

  • WO: 97.28
  • Top WATR: 98.57
  • Bottom WATR: 95.99
  • PWH: 98.81
  • PWL: 97.20

GBP/JPY

GBP/JPY Hourly Chart

This pair’s downtrend is still intact, even though it’s consolidating at the moment. I’d look for a clean break of the PWL or maybe a retest of the 119.00 MaPs before I consider shorting it again.

  • WO: 117.70
  • Top WATR: 118.90
  • Bottom WATR: 116.50
  • PWH: 119.12
  • PWL: 117.30

EUR/GBP

EUR/GBP Hourly Chart

Considering that the area of .8370 was the high and .8230 was the low in the last 2 weeks, I’d say we could see these zones reprise their role as resistance and support zones this week. Keep an eye on ‘em as they might yield pip-making opportunities again!

  • WO: .8267
  • Top WATR: .8334
  • Bottom WATR: .8200
  • PWH: .8377
  • PWL: .8222
  • Funginix

    WATR stands for weekly average true range, and PWH stands for previous week’s high

  • Westmike29

    great information to follow, but could you please define your abbreviations?? WATR, PWH etc

    • cyclopip

      WATR stands for weekly average true range, and PWH stands for previous week’s high.

      I listed down all the abbreviations in the intro to my trading framework. You can find ‘em all here: http://www.babypips.com/blogs/

      Thanks for dropping by, Westmike99!