NZD/USD: The uptrend started a few weeks ago is clearly observable. However, there is a technical correction started about 5 sessions ago.
USD/CHF: Friday’s session saw the pair to clearly cross the resistance of 0.9781 and to close above it. Actually the pair is on its way to the following resistance at 0.9931.
NZD/USD
Daily graph: http://www.real-forex.com/charts-daily/November2010/NZD_DAILY_161110.JPG
The uptrend started a few weeks ago is clearly observable. However, there is a technical correction started about 5 sessions ago.
Please give attention to the following observations:
– The hammer appeared during the last sessions.
– The fact the pair corrected exactly 50% of the previous trend
– The almost instantaneous increase just after the pair reached those 50% correction.
These 3 points let us anticipate the renewal of the uptrend, creating the opportunity to go “Long”. However, a confirmation of the new orientation requires confirmation trough an increasing configuration on 1H graph.
Potential trade
1H Graph: http://www.real-forex.com/charts-daily/November2010/NZD_1H_161110.JPG
The required confirmation should appear once the pair will cross the resistance level at 0.7777. Once crossed, a market order can be entered. Following is one option:
– “Limit” order on “Long” position 10 pips above the resistance mentioned earlier, meaning: 0.7787.
– “Stop Loss” on the last dip point reached, meaning: 0.7745.
– 1st degree for “Take profit” on the following resistance: 0.7811
USD/CHF
Daily graph: http://www.real-forex.com/charts-daily/November2010/CHF_DAILY_161110.JPG
Friday’s session saw the pair to clearly cross the resistance of 0.9781 and to close above it. Actually the pair is on its way to the following resistance at 0.9931.
According to the candles appeared during the last few sessions, the bulls have the power over the bears and no one can stop them. In other words, we do not expect any soon reversing trend.
When the pair will reach that resistance it can have three different behaviors. Each one indicates a specific potential trade and soon trend:
1) Test of the resistance èindication of close reversal, potential for “Short” trades.
2) Stop on the level. It could be better waiting for a “Parking” of about a session and a half, and then entering a “Short” order.
3) Clear and sharp breach of the resistance è It could be safer waiting for a small correction and after the identification of a increasing configuration on 1H graph, go “Long” along with the new trend.
Have a profitable day!
Real – Forex team 