Tuesday, January 10, 2012

Forex pairs to observe

Just a warning there is going to be some big fundamental announcement coming out. Proceed with caution
There were some really good moves in the market today. Predominantly the commodity dollars rallied against other pairs. Currently the market is going back and forth between two trend lines in a lot of the pairs; this resulted in the behaviour scene over the last month or so, where it was a roller coaster ride and struggle for control between the bears and the bulls. The market will soon face a decision over which way to go and a nice trend should follow soon. At this moment, we want to focus on clear trends and opportunities we can take advantage of. We are currently looking at these 6 pairs.

The Cable-currently going sideways

As expected the cable bounced of support levels in the channel and is on its way up to meet the upper levels. It might face some resistance around 1.5500 area before continuing its way north, it will face bigger resistance around 1.5580 area, so be cautious around this level.

still paying close attention to Aud/Chf and Aud/Cad--approaching resistance

Aud.Chf is on its way to reach the left tip of the bear crown around 0.9786 area, if the bulls take out this area proceed in extreme caution for shorting this pair.
Aud.Cad failed to take out the low at 1.0456 and decided to take another run at the top of the channel. If it breaks through wait for a confirmation before buying this pair. On the other hand if it fails look for a u-turn on this pair.

Gbp/Jpy, Eur/Jpy and Gbp/Jpy--Currently retracing
Gbp/jpy, eur/jpy and gbp/jpy are all retracing towards resistance levels. We highly doubt they will retrace very far before u-turning. Well be looking for short opportunities here on counter trendline breaks and bearish formations

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