EUR/CAD: About 3 weeks ago, an important decrease process started for the pair. About a week and a half, a very important breakdown of the support level of 1.3946 changed that support into a resistance.
AUD/USD: After an important increasing process which last 2 months, the pair started to decrease back a few sessions ago.
EUR/CAD
Daily graph: http://www.real-forex.com/charts-daily/November2010/EUR_CAD_DAILY_221110.JPG
About 3 weeks ago, an important decrease process started for the pair. About a week and a half, a very important breakdown of the support level of 1.3946 changed that support into a resistance.
During the last few trading sessions, the decrease was partially corrected until it reached the resistance of 1.3946. A vain breach of that resistance occurred, suggesting the end of the technical correction and the beginning of a new bearish trend.
In order to catch the created opportunity to go “Short”, an additional confirmation, which is the identification of a decreasing configuration on One-Hour graph, is required.
Potential Trade
1H based graph: http://www.real-forex.com/charts-daily/November2010/EUR_CAD_1H_221110.JPG
The required configuration should appear with the breakdown of the support 1.3900 (1H support). Following that breach, entry orders may be launched. Following is one option:
– “Limit” order on “Short” position 10 pips below the mentioned support, meaning 1.3890.
– “Stop loss” order on the last peak appeared, which is 1.3938.
– 1st degree for “Take Profit” on the following support, 1.3942.
AUD/USD
Daily graph: http://www.real-forex.com/charts-daily/November2010/AUD_DAILY_221110.JPG
After an important increasing process which last 2 months, the pair started to decrease back a few sessions ago. As part of the decrease, the pair clearly broke down the support of 0.9973 and currently, is making its way to the following support: 0.9661. When this support will be reached, three outcomes are possible:
1) Test of the support: Indication of close reversal, potential for “Long” trades.
2) Stop on the level: It could be better waiting for a “Parking” of about a session and a half, and then entering a “Long” order.
3) Clear and sharp breach of the support: It could be safer waiting for a small correction and, after the identification of a decreasing configuration on 1H graph, go “Short” along with the new trend.
Have a profitable day!
Real-Forex team 