Weekly Watch: July 30 to August 3, 2012

It’s an exciting time for sports fans all over the world as the London 2012 Olympics are well underway! And it seems that the forex markets are joining in on the hype as well – they’ve been really active as of late!

With new developments in the euro zone fueling risk appetite, the euro and the British pound both put up excellent numbers and gained serious ground against the yen towards the end of last week. Let’s see if the markets have enough steam to keep this rally going!

EUR/JPY

EUR/JPY Hourly Chart

The area around the previous week high (PWH) looks like a strong resistance zone, as that level snuffed EUR/JPY rallies in the past two weeks. This may be a good area to get short if you’re thinking of selling the euro. On the other hand, the bottom weekly ATR and 95.00 handle present a potential turning point for another EUR/JPY rally.

  • WO: 96.53
  • Top WATR: 97.83
  • Bottom WATR: 95.24
  • PWH: 97.34
  • PWL: 94.12

GBP/JPY

GBP/JPY Hourly Chart

The 123.00 major psychological handle (MaPs) was once a solid support level, so who’s to say it wont act as one again this time around? To the upside, 124.00 could act as resistance, since this level hasn’t been breached in the past three weeks.

  • WO: 123.44
  • Top WATR: 124.75
  • Bottom WATR: 122.14
  • PWH: 123.79
  • PWL: 120.84

EUR/GBP

EUR/GBP Hourly Chart

With the way the euro and pound have been tugging at EUR/GBP, it’s hard to say which way this pair will go. But since the area of the PWH and the top WATR was a zone that the market had difficulty crossing in the past three weeks, there’s a good chance it may be an area of interest again. Down below, look for 78.00 to act as an intraweek support level.

  • WO: .7820
  • Top WATR: .7874
  • Bottom WATR: .7767
  • PWH: .7874
  • PWL: .7755

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