Wednesday, April 1, 2009

Cad-yen resumes downtrend

cad jpy daily 01.04.09

Canadian dollar-yen daily chart (cad-jpy)

As you can see and I have marked on the chart, the previous swing high in December end provided significant resistance & price after seeking to for four days to find way above it, finally failed to do so & has now begun a downtrend. The short term trend has turned down.

Now the 240 mins chart -

cad yen 4 hour 1.4.09

Just wanted to show a couple of things -

a. The number of attempts at the resistance line

b. After initially moving down, price again went up to test the previous support line, but faced selling there from traders who were looking to enter into the trade. Again, this provides us with more confidence in taking a short trade.

Further, as i have written in the last few posts, the whole market is looking weak and thus can be traded on the downside.