Weekly Watch: January 23 to 27, 2012

The euro managed to retrace quite a bit last week, posting new highs versus the yen and pound. The only question is, have we seen the bottom or are sellers now ready to jump back in?

EUR/JPY

EUR/JPY Hourly Chart

To think, this pair was chillin’ just above 97.00 early last week. 300 pips or so later, it’s now back at the 100.00 handle! The pair is currently finding resistance at the top WATR and PWH, but with a slew of economic reports coming out this week, who knows where this pair could be headed! If the pair does drop back, I suspect that the WO could serve as a potential support area.

  • WO: 99.01
  • Top WATR: 100.32
  • Bottom WATR: 97.70
  • PWH: 100.34
  • PWL: 97.03

GBP/JPY

GBP/JPY Hourly Chart

Just like EUR/JPY, GBP/JPY made a nice run last week and is now trading just below the 120.00 MaPs. If we do see a pullback in this pair, I’d look at the 119.00 handle as a potential entry point to join the long camp. The 119.00 mark has been a major area of interest the past couple of weeks, so we could see some action there.

  • WO: 119.58
  • Top WATR: 120.78
  • Bottom WATR: 118.38
  • PWH: 119.92
  • PWL: 117.39

EUR/GBP

EUR/GBP Hourly Chart

If you’re a fan of ranges, then you’ll be pleased to know that EUR/GBP is now trading just below key resistance at around .8375. If you look back, you’ll notice that this price area has been a major support/resistance zone the past three weeks.

  • WO: .8282
  • Top WATR: .8352
  • Bottom WATR: .8212
  • PWH: .8380
  • PWL: .8255

3 comments

  1. Colin Meeke

    Hi I am new to your analysis. Please explain the terms WO,TOP WATR, BOTTOM WATR, PWH, AND PWL as I have not seen these terms before

    Reply

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