EUR/GBP: Please notice the following event: After a downtrend started a few weeks ago, the pair closed at a support a little more higher than the previous floor which was 0.8336.
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EUR/JPY
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/EUR_JPY_DAILY_141210.JPG
A resistance at 111.58 was crossed yesterday after an uptrend started 2 weeks ago. The pair crossed that resistance and is expected to start this session above it.
It is important to notice again that it is not recommended to enter a “Long” position unless an ascending configuration is identified to confirm the trend on a 1H scaled graph. It is exactly what happened during the night session.
Potential trade
1H graph: http://www.real-forex.com/charts-daily/DEC2010/EUR_JPY_1H_141210.JPG
Actually, the pair is running a technical correction between 111.58 and 112.07. The required configuration should appear when the pair will break out the resistance of 112.07.
– “Limit” order on “Long” position 10 pips above the mentioned resistance, meaning 112.17.
– “Stop Loss” on the last dip occurred, meaning 111.61.
Since there is no resistance identifiable to place the “Take Profit”, we suggest placing it 66 pips above 1H resistance, the same quantity as for the “Stop Loss” of that trade, meaning:
– 1st Degree to “Take Profits”: 112.73.
EUR/GBP
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/EUR_GBP_DAILY_141210.JPG
Please notice the following event: After a downtrend started a few weeks ago, the pair closed at a support a little more higher than the previous floor which was 0.8336.
Actually this is a specific reversal downtrend called “double floor”, an indicator for a switch from downtrend to uptrend. An increasing configuration, required for confirmation, will appear when the resistance of 0.8529 will be crossed on the daily graph, creating the opportunity for a “Long” trade.
It is not recommended to place the order immediately after the cross. It would be safer waiting for the end of a small technical correction, and then place the order.
Have a profitable week!
Real Forex team. 