NZD/USD: For several weeks, the pair is on a downtrend. During the last session, a support at 0.7399 was broken down.
AUD/JPY: A few sessions ago, the pair crossed the daily resistance at 82.85.
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NZD/USD
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/NZD_DAILY_201210.JPG
For several weeks, the pair is on a downtrend. During the last session, a support at 0.7399 was broken down. The pair clearly closed below that support, suggesting the continuation of the actual trend, meaning the creation of an opportunity to go “Short”. However, this opportunity requires a confirmation that may appear by the identification of a decreasing configuration on 1H scaled graph.
Potential trade
1H graph: http://www.real-forex.com/charts-daily/DEC2010/NZD_1H_201210.JPG
The required configuration should appear when the 1H support at 0.7351 will be broken down.
– “Limit” order on “Short” position 10 pips below the mentioned 1H resistance, meaning: 0.7341.
– “Stop Loss” order on the last peak reached: 0.7385
– There is no visible support to set in order to close the trade, thus the 1st degree to place a “Take Profit” order should be as deep as the potential profit, meaning 34 pips, which is 0.7317.
AUD/JPY
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/AUD_JPY_DAILY_201210.JPG
A few sessions ago, the pair crossed the daily resistance at 82.85. As we already said, ordering a position immediately after the cross of a certain level is not recommended unless the resistance is tested and a technical correction followed the breach.
This is exactly what happened recently: a technical correction occurred until it reached the mentioned resistance. Actually, the opportunity for a “Long” trade seems open but a confirmation trough the identification of an increasing configuration on 1H graph is required.
Have a nice day
Real-Forex team. 