Weekly Watch: May 14 to 18, 2012

First up, a shout out to Manchester City and the two LA teams! Man City clinched the EPL title with two goals in stoppage time from Edin Dzeko and Sergio Aguero!

Meanwhile, in the NBA, the Lakers and Clippers gutted out game 7 victories in their respective series, which means both teams will be advancing to the second round for the first time EVER! That’s how you come through in the clutch!

And now, on to the charts! Last week the bears were in control, with EUR/JPY, GBP/JPY, and EUR/GBP all setting new lows. Will we see more of the same this week or is a reversal in the cards?

EUR/JPY

EUR/JPY Hourly Chart

That gapped filled and held last week, giving me a pretty sweet victory in my short EUR/JPY setup. The question for this week though is whether or not the 103.00 handle will hold. If we see a solid candle close below the previous week low (PWL), it may signal that we’re in for another bearish move. On the flip side, I’ll be keeping my eye again on the previous week high (PWH), which also lines up with the top weekly ATR (WATR), as we could see interest at this area.

  • WO:103.23
  • Top WATR: 104.47
  • Bottom WATR: 101.99
  • PWH: 104.43
  • PWL: 102.76

GBP/JPY

GBP/JPY Hourly Chart

I’ll be honest, this looks like a really ugly chart. But I still think there’s potential to make some pips. Right now, it appears that an inverse head and shoulders formation is in the works, with the shoulders finding support at the 128.50 MiPs and the head at the 128.00 MaPs. For now, I’ll be waiting for a break above 129.00 and possibly above the PWH before establishing a long position.

  • WO:128.48
  • Top WATR: 129.79
  • Bottom WATR: 127.18
  • PWH: 129.58
  • PWL: 127.83

EUR/GBP

EUR/GBP Hourly Chart

Just one look at the chart and I’m sure you can tell what I’m focusing in on. See it? That’s right – the .8000 handle! After bouncing right off the major psychological handle, I think we could see a lot of interest at that level again this week. Of course, some nice reversal candlesticks right at the support level would be nice before I click the buy button on this pair!

  • WO:.8034
  • Top WATR: .8088
  • Bottom WATR: .7981
  • PWH: .8078
  • PWL: .7996

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  • Granticus_Maximus

    I was just checking out the EUR/GBP chart shortly before you posted this and noticed also that the previous support trendline has acted as a resistance line. Let’s see how things pan out over the coming hours and days with Europe’s fundamentals to see whether a breakout up through that line is in play, or if a break through that .8000 handle takes place! :D

    • cyclopip

       You were spot on about that .8000 break, mate! Did you trade it?

      • Granticus_Maximus

        Unfortunately, no… I’ve spent the last week moving house and still don’t have a line connected (and don’t have a VPN), so I haven’t been trading, and it looks like I missed out on a week of crazy awesome looking trades… :'(
        And man, look at that EUR/USD! I should’ve held my trade from 1.30 instead of cashing in my pips earlier on! XD …same for that EUR/JPY setup of yours a few days back, huh?

        • cyclopip

          Ha! I wish I still had that trade open. But of course, we have the benefit of hindsight. I’m happy with the profits I booked on that trade. It was all part of the trading plan! 

          • Granticus_Maximus

            I look back and I had shorted the AUD/USD at 108.5 and the EUR/JPY at around 111.0. Pretty much perfectly positioned entries, and if I still had them open I’d be a bajillionaire… lol. BUT, like you said, it was all part of the trading plan and I still made some pips along the way.

            Keep those trade ideas coming mate! :)