USD/CAD
Daily graph: http://www.real-forex.com/charts-daily/November2010/CAD_DAILY_291110.JPG
For the last three weeks, the pair is moving sideways between the resistance 1.0246 and the support 1.0075. The sideways movement is the principal trend for all the pairs in general for the last several months.
Please notice the fact that during the last session, the pair hit exactly the resistance point, and started to decrease a little after that, and finally closed below that level. It is possible that the pair would keep decreasing until it reaches the lower trend line (the support at 1.0075) as well as it could stop before.
Please pay attention to the fact that the first level for a “Take profit” order on the suggested trade is quite high. Those level are the one which may increase the value of your portfolio accordingly.
In order to catch the created opportunity to go “Short”, the identification of a decreasing configuration on 1H is required.
Potential Trade
1H scaled graph: http://www.real-forex.com/charts-daily/November2010/CAD_1H_291110.JPG
The required configuration should appear once the 1H support at 1.0179 will be broken down by the pair. Once it will be confirmed, this is the time to enter a trade.
– “Limit” order on “Short” position 10 pips below the mentioned support (1H), meaning: 1.0169
– “Stop Loss” order on the last peak appeared: 1.0246
– 1st level for a “Take Profit” order on the following support: 1.0145
NZD/USD
Daily graph: http://www.real-forex.com/charts-daily/November2010/NZD_DAILY_291110.JPG
Following the breakdown of the support on 0.7975, the pair began to decrease, several weeks ago. Actually, the pair is making its way to the support around 0.7425 after the previous breakdown of the support placed at 0.7650 USD. It seems that there is nothing on its way that can stop it.
Once the support will be reached, there are 2 possible outcomes:
- The collapse of the support followed by a closing below that level. In this case, it would be safer waiting for a small technical correction to occur and after the previous trend will be restored, going “Short” with the trend.
- Stop on the support, with test or without. In this case, waiting for the end of a “resting period” of at least a session and a half, to confirm the implementation of the support would minimize the risk. Then, waiting for the rebound to occur and going “Long” along with the new trend, until the closest resistance, which may be the upper level of the neutral trend.
Have a profitable week
Real-Forex staff 
