The past few days have been an absolute thrill for me sports-wise and trading-wise!
In the NBA, we saw the Miami Heat beat the Boston Celtics to make their way to the Finals. In boxing, we saw Timothy Bradley pull off a controversial split decision victory over Manny Pacquiao. In tennis, world number 1 Maria Sharapova won the French Open and became the 10th woman to complete a career Grand Slam, while Nadal took a 2-1 set lead against Djokovic in the to-be-concluded men's finals.
And of course, I just hit two awesome winners this week with my EUR/GBP and AUD/JPY trades! It's hard to imagine this week living up to last week's hype, but I took a look at the charts of our favorite crosses, and I sense a lot of potential!
EUR/JPY
The huge gap that formed on EUR/JPY over the weekend has presented a couple of interesting setups. Any downward pressure on the pair could easily send it low enough to tap last Friday's close, which lies in the same area as the 99.00 major psychological handle (MaPs) and the bottom weekly ATR (WATR). Meanwhile, to the north, we see potential resistance at 101.00 as the market has shown hesitance to approach this handle (a major area of interest in the past).
- WO: 100.65
- Top WATR: 102.10
- Bottom WATR: 99.20
- PWH: 100.63
- PWL: 96.80
GBP/JPY
On GBP/JPY, we see a similar gap, and though it's a bit narrower, it presents the same potential. The area between the previous week high (PWH) and 124.00 looks like a promising resistance zone. To the south, the 123.00 MaPs could show interest as it lies just pips away from last Friday's close.
- WO: 123.45
- Top WATR: 125.04
- Bottom WATR: 121.86
- PWH: 124.35
- PWL: 119.76
EUR/GBP
Rounding up our trio is EUR/GBP, which has been range-bound over the past few days. From the looks of it, the area of .8150, which is right between the weekly open (WO) and PWH, will continue to be a solid resistance zone as the market has already failed to rise above it. Down below, I'll be keeping my eye on .8050, as it was last week's low and is the immediate major support level.
- WO: .8153
- Top WATR: .8209
- Bottom WATR: .8098
- PWH: .8142
- PWL: .8050
Weekly Watch: June 4 to 8, 2012
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