Wednesday, March 25, 2009

Cad-yen in same position as nzd-yen

This is the daily chart for Cad-yen. Notice the similarity to the nzd-ten chart ?

It too faced good resistance from the previous high made in december. The action is clearer on the 4 hour chart below. Again, expectation is that prices should show a dip. The area to buy is the area around 77.9-78.1area, which again i have marked out as the green line in the 4 hour chart below.

As is amply clear cad-yen faced a lot of resistance at this level with multiple candles touching the level
and falling back within the earlier range. This level should now act as solid support and should be the place where we will look to enter. But it isnt that prices cant dip further, they can, right upto the rising trendline from January end. But the 78 level should offer good support. Watch price action when and if price reaches there.

One can take short positions too here, but the risk reward is not as great as in nzd-yen.