EUR/GBP: For the last three weeks, the pair is moving aside between 0.8528 and 0.8348. During the previous session, the resistance 0.8528 was broken up but …
CAD/JPY: For about a month and a half, the pair is moving on uptrend, and broke up the resistance of 84.01 during the last session.
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EUR/GBP
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/EUR_GBP_DAILY_171210.JPG
For the last three weeks, the pair is moving aside between 0.8528 and 0.8348. During the previous session, the resistance 0.8528 was broken up but the pair decreased back during the same day and closed below the resistance.
That was a vain breach. Today, the pair kept moving below the resistance. With today’s session, the pair completed a “parking” of two sessions. This template suggests a reversal, whose consequence is the creation of an opportunity to go “Short”.
However, this opportunity requires a confirmation trough the identification of a decreasing configuration on 1H scaled graph.
Potential trade
1H graph: http://www.real-forex.com/charts-daily/DEC2010/EUR_GBP_1H_171210.JPG
The required configuration should appear after the pair will break down the resistance at 0.8457.
– “Limit” order on “Short” position 10 pips below the resistance mentioned, which means: 0.8467.
– “Stop Loss” order on the last peak occurred: 0.8496.
– 1st degree of “Take profit” on the following support: 0.8433
CAD/JPY
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/CAD_JPY_171210.JPG
For about a month and a half, the pair is moving on uptrend, and broke up the resistance of 84.01 during the last session. The breach was done trough a strong bullish candle. However, that breach was vain since the pair decreased back below the resistance a little later.
The behavior of the pair against the resistance will determine the future trend:
1. If the resistance is broken, a new uptrend will start, creating the opportunity to go “Long”.
2. If the pair is stopping below the resistance for about 2 sessions, a reversal causing a new downtrend, opening an opportunity for a “Short” trade.
In addition to the behavior, the strength of the candles will show who between the bulls and the bears is more powerful, potential indicator of how strong will be the new trend resulting from the evolution of the pair.
Have a profitable day!
Real-Forex team 