Weekly Watch: November 28 to December 2, 2011

Greetings, forex homies! Instead of doing the Weekly Winner, I decided to try something new this week.

We’ve been holding the Weekly Winner for almost 9 months now, and I think we’ve pretty much established that our framework is capable of spotting sweet setups on a weekly basis. So from now on, instead of going back to REVIEW price action, I’ll be setting up my charts to give a PREVIEW of the key levels to watch for the week ahead.

I think this will help us pinpoint possible setups early on and get a discussion going on about potential plays we can all take together.

Remember, preparation is more than half the battle! It’s important to set yourself up early in the trading week so that you can act and react quickly when the action picks up.

This is how it’ll work, every Monday from here on out:

  1. I’ll be posting the 1-hour charts of my three favorite pairs: EUR/JPY, GBP/JPY, and EUR/GBP.
  2. I’ll be listing down the pairs’ previous week lows (PWL), previous week highs (PWH), weekly average true range (WATR), weekly open (WO), as well as other key levels to watch.

Basically, I’ll still be sticking to the same principles that I outlined in my original trading framework, except with a more forward-looking approach.

So without further ado, here are this week’s charts!

EUR/JPY

EUR/JPY Hourly Chart

The area near the previous week high, previous week low, and the WO seem to be the key zones to watch considering these were significant support and resistance levels in the past. Price remained range-bound here for a while. Keep your eye on these bad boys!

  • WO: 104.955
  • Top WATR: 104.96
  • Bottom WATR: 101.80
  • PWH: 104.36
  • PWL: 102.49

GBP/JPY

GBP/JPY Hourly Chart

This one’s a little trickier. I think the area of 121.00 could remain a key area of interest, as it has been a major support area in previous weeks. Also, the PWH near the 119.50 MiPs looks like a formidable support zone.

  • WO: 120.06
  • Top WATR: 121.51
  • Bottom WATR: 118.61
  • PWH: 121.53
  • PWL: 119.38

EUR/GBP

EUR/GBP Hourly Chart

We’ve got a whole bunch of potential support levels lining up near the bottom WATR, so that would be a good area to watch. The .8590 level has also been a clear area of interest in the past two weeks.

  • WO: .8612
  • Top WATR: .8688
  • Bottom WATR: .8536
  • PWH: .8666
  • PWL: .8546