Weekly Watch: July 23 to 27, 2012

Isn’t it funny how golf is so much like forex? Sometimes, you’re in a really good groove, and other times, you’re in a really bad slump.

Just take a look at Tiger Woods, who was once the world’s top golfer but now has failed to win a major tournament in 4 years. It looked as though he would end the drought and bag his 15th major championship this weekend, but a triple bogey on the 6th hole of the British Open ended all hopes for that!

On the other hand, Ernie Els had an awesome come-from-behind performance to bag the title. Now, that’s how you get things done!

I won’t lie – I was really pumped and inspire by Els’ solid game! So this week, I’m hoping to replicate his consistent performance and grab a winner or two, not in golf, but in forex! Hopefully, these charts will help me out:

EUR/JPY

EUR/JPY Hourly Chart

Considering the huge euro sell-off that we recently saw, it’ll probably be best to look for ways to short this sucka. The way I see it, we could see a retracement to the previous week low (PWL) in the event price tries to fill the weekend gap. If this level doesn’t hold, there’s a chance price will meet resistance between 96.00 and 96.50, as it found solid support in this area before.

  • WO: 94.99
  • Top WATR: 96.29
  • Bottom WATR: 93.69
  • PWH: 97.38
  • PWL: 95.35

GBP/JPY

GBP/JPY Hourly Chart

Aha! This one didn’t take long to catch my eye. The area around the PWL and weekly open (WO) jumps right at you because it was a solid support level last week. That being the case, it could see interest again this week. Also, I’d keep my eye on 123.00 if I were you.

  • WO: 122.43
  • Top WATR: 123.76
  • Bottom WATR: 121.10
  • PWH: 123.92
  • PWL: 122.49

EUR/GBP

EUR/GBP Hourly Chart

The .7800 major psychological handle (MaPs), which served as support momentarily last week, is still within striking zone, so this could be a good place to play a retracement. But of course, with how weak the euro has been lately, price could end up just forging new lows and breaking right through the WO.

  • WO: .7759
  • Top WATR: .7822
  • Bottom WATR: .7696
  • PWH: .7880
  • PWL: .7771

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