Friday, October 14, 2011

Possible short term trades

I have a couple of trades that may play out on  the short term considering the current financial situation the market is in at the moment. Usd/Cad is a descending channel that may continue to hold on the 4hr considering the effects of the Dollar to the Loonie.
The Aussie is at a big round number of 1.0200 holding it as resistance in a rising channel. A break above this level would signal further upward strength as there is a lot of consolidation at this point in the 4 hr time frame.There is further support by the 200 day moving average which hasn't been broken for a while.


The Nzd/Usd has reached the 38% fib and has been unable to move past the trend line that is dated from the 31st of August this year.A break above this level will signal further upward pressure but it is highly unlikely to do so.


The Eur/Gbp has tested the 4hr trend line and is headed upwards should it manage to get passed the 0.8741 resistance line.This trend line which is dated back from the 31st of August has formed a triangle formation which seems to have broken and is finding some bullish momentum.

Eur/Cad is at a strong resistance line off the 78.6% fib level on the 4 hr time frame.This could be a good short term trade to the 61.8% fib level which would consolidate the bullish flag pattern being formed in the shorter time frame.

 Aud/Nzd is at a strong resistance level of 2800 which is also a big psychological number.The pair has been held at this point as support and resistance before and may hold again as resistance.Lets see how it pans out before we can make any decisions.A break may signal more upward pressure towards the 3000 big round number

One to watch is the Nzd/Chf which has been unable to get pat the 7137 resistance line and in the process forming a bullish triangle pattern on the 4 hr. I am expecting a bearish break on this one but will wait for a retest of the trend line before any entries on the downside.

This are my thoughts on today's price action please do your own analysis before entering on any positions.Good luck trading to all.

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