AUD/CAD:The last four sessions were marked by a technical correction of the previous downtrend.
USD/CHF: A new uptrend started after 2 sessions of a strong and sharp downtrend, and the end of the preceding uptrend. However, this trend is weak and powerless.
AUD/CAD
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/AUD_CAD_DAILY_081210.JPG
The last four sessions were marked by a technical correction of the previous downtrend. During the previous session, the pair reached and crossed upward a resistance at 0.9976 but it couldn’t face it. By the end of the session, the breakout turned to be a simple vain breach.
Actually the vain breach is an indication for the downtrend to restart. The current identification requires a confirmation that can appear under the form of the identification of a decreasing configuration on 1H scaled graph.
Potential trade
1H scaled graph: http://www.real-forex.com/charts-daily/DEC2010/AUD_CAD_1H_081210.JPG
The required configuration should appear with the breakdown of the support at 0.9944 (1H graph support). Once the support crossed, the opportunity to catch the “Short” trade created should be presented. Following, a potential transaction:
– “Limit” order on “Short” position 10 pips below the mentioned support; i.e.: 0.9934
– “Stop Loss” on the last peak reached: 0.9961.
– “Take Profits” on the following support: 0.9915
USD/CHF
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/CHF_DAILY_081210.JPG
A new uptrend started after 2 sessions of a strong and sharp downtrend, and the end of the preceding uptrend. However, this trend is weak and powerless. Actually, the bears have a certain power over the bulls.
We expect the pair to stop on one of the two levels of the technical correction, or at the extreme, to stop on the resistance at 1.0069.
Once that resistance will be reached, two outcomes are possible:
1. The pair is stopped on the resistance and the opportunity to go “Short” should be presented and confirmed by the identification of a decreasing configuration on a 1H graph.
2. Breakout of the resistance of 1.0069 followed by a clear closing above the resistance. In this case, the opportunity presented will be a “Long” transaction, but only after the end of the technical correction following the breakout.
Have a profitable session
Real-Forex team 