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Chart of the Day: NZD/JPY

Wednesday, 03 December 2008 08:24:54 GMT

Written by Thomas Long, Power Course Instructor

With most of the currency pairs already in the middle of a move on the 4-hour chart, this could be a time to look at the hourly charts to see if we can take advantage of any bounces off of lows or highs.

12-03 nzdjpy

The NZD/JPY is one such pair. With this market in a strong downtrend on the daily and 4-hour chart, we can see a bounce off of the lows on the hourly chart is losing momentum. Instead of using technical indicators on the hourly chart, I will use support and resistance to use as entries. I like to buy new highs and sell new lows. So we could sell on a move down through support with a stop placed above resistance. As usual, target would be twice the risk.

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