Weekly Watch: January 2 to 6, 2011

Happy New Year to one and all! I hope you were able to get plenty of rest over the holidays because this week, we’re diving right back into the markets!

To be honest, I’m not expecting much action today since most markets will still be closed, but action should pick up nicely tomorrow! Anyway, here are the levels that I’ll be keeping an eye on this week:

EUR/JPY

EUR/JPY Hourly Chart

Sellers appear to be in control of the euro, so I think it would be wise to keep an eye on the area around the PWL and the WO just above 99.50. It’s holding for now, but I think this support level will come under a lot of pressure in the following days. But should price manage to pop up, I see the 101.00 offering a lot of potential since it was a clear area of interest in the past and it lines up well with the top WATR.

  • WO: 99.59
  • Top WATR: 100.94
  • Bottom WATR: 98.24
  • PWH: 102.01
  • PWL: 99.57

GBP/JPY

GBP/JPY Hourly Chart

GBP/JPY has been consolidating for a while now, but as you’ll notice, it has been coming closer and closer to the PWL and WO. I think this is the main area to watch for the coming days. A break of this level could see much bigger losses for the pound.

  • WO: 119.32
  • Top WATR: 120.60
  • Bottom WATR: 118.04
  • PWH: 122.19
  • PWL: 119.28

EUR/GBP

EUR/GBP Hourly Chart

We have pretty much the same story on EUR/GBP. I’ll be watching the area of the PWL closely since the .8315-.8330 zone was a solid support area in the last two weeks of 2011. See for yourself, homies!

  • WO: .8347
  • Top WATR: .8414
  • Bottom WATR: .8280
  • PWH: .8423
  • PWL: .8329