Weekly Watch: July 2 to 6, 2012

First up, a big round of applause to the Spanish football team!

Euro 2008. World Cup 2010. And thanks to yesterday’s 4-0 thrashing of Italy, Spain is now also the Euro 2012 champions! Viva La Furia Roja! Can you say dynasty?

It’s a good thing they beat Italy and not Germany in the Finals, otherwise Spain might not have gotten its recently approved bailout! Ha! Just playing!

Speaking of Germany, it seems that European leaders were able to come up with some solutions at last week’s EU summit. This helped boost risk appetite, allowing EUR/JPY and GBP/JPY to soar up the charts last Friday. Make sure you check out Forex Gump’s latest post to find out what EU leaders agreed on!

Could this be the start of a new trend? Make sure you bookmark this page and keep an eye on these hot levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY Hourly Chart

After sinking to as low as the 98.50 MiPs late last week, EUR/JPY recovered on Friday and opened this week just above the 101.00 MaPs. If we see a pullback after last Friday’s move, I suspect that we could see some interest around the 100.00 MaPs and bottom WATR area. On the flip side, if we see price close above the PWH at 101.40, it could signal a move up to the top WATR.

  • WO: 101.15
  • Top WATR: 102.49
  • Bottom WATR: 99.79
  • PWH: 101.40
  • PWL: 98.35

GBP/JPY

GBP/JPY Hourly Chart

Up north, the key area to keep an eye on is the resistance zone of 125.50 to 125.70. A break of this level could lead to GBP/JPY soaring to as high as the top WATR (126.76). On the other hand, if you’re looking to buy on a retracement, make sure to mark out the 124.50 MiPs, as this gathered some interest last week.

  • WO: 125.29
  • Top WATR: 126.76
  • Bottom WATR: 123.84
  • PWH: 125.68
  • PWL: 122.89

EUR/GBP

EUR/GBP Hourly Chart

Make that four weeks in a row that EUR/GBP has failed to set a new trend! I think the best bet would be to try and pick a top or bottom for the week. The .8100 + PWH combo looks like it could serve as tough resistance point, while support at around .7985 has held strongly the past couple of weeks now. In any case, make sure you set those stop losses and practice good risk management techniques!

  • WO: .8077
  • Top WATR: .8130
  • Bottom WATR: .8024
  • PWH: .8095
  • PWL: .7984

Q2 2012 Trading Performance Review
Weekly Watch: June 25 to 29, 2012
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>