Weekly Watch: November 5 to 9, 2012

Beardsanity is taking off in Houston, the Falcons lead the NFL with a 7-0 mark, and the NHL is STILL in a lockout. What a crazy time for sports fans!

If you’re a forex trader, I’m sure you can relate, as we’ve been seeing some craziness on the charts as well. The question is, are y’all ready for another wacky week of cross-currency trading? Since I’m such a nice guy, I’ve marked out all the key levels to keep an eye on this week for EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY Hourly Chart

After that letdown by the Bank of Japan last Tuesday, EUR/JPY edged higher over the remainder of the week, as it confidently traded above the 103.00 handle. I suspect that this will continue to be a major area of interest this week, with a lot of action going back and forth between buyers and sellers. If the bears manage to take control though, I wouldn’t be surprised if we see the pair drop all the way down and test the 102.00 and bottom WATR cluster zone.

  • WO: 103.14
  • Top WATR: 104.26
  • Bottom WATR: 102.00
  • PWH: 103.99
  • PWL: 102.19

GBP/JPY

GBP/JPY Hourly Chart

Looks like the 129.50 MiPs is really holding a solid resistance level! I wouldn’t be surprised if we see the bulls try and make another run towards this area. If we see a bullish candle close above the PWH, it may signal that the pair could be headed for new highs, perhaps even above the top WATR. Down south, I’d keep an eye on the 128.00 MaPs, as we’ve seen some interest at that level in the past.

  • WO: 128.80
  • Top WATR: 129.94
  • Bottom WATR: 127.68
  • PWH: 129.60
  • PWL: 127.02

EUR/GBP

EUR/GBP Hourly Chart

And just like that, we’re right back at the .8000 handle folks! It looks like it’s make-or-break time for EUR/GBP, as it’s threatening to break below. A solid bearish marubozu candle close below the .8000 mark could signal that a strong drop is in play. On the flip side, if we see signs of a reversal – such as candlesticks or bullish divergence – we may just see the pair rise up to retest the PWH.

  • WO: .8006
  • Top WATR: .8053
  • Bottom WATR: .7951
  • PWH: .8077
  • PWL: .7996

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