. . .go short at the elbow.

So you're with the trend.

Blizz

USDCAD has broken above the range top at 1.2470, a key multiple support/resistance level and the 14.6% Fibonacci retracement of the 11/07/07-10/27/08 rally. This opens the door for a long position aiming at the previous top above 1.30.

Strategy:

1. Long USDCAD between 1.2550-1.2570
2. Set stop loss at 1.2168 below the 11/18 wick low
3. Set "soft" target at 1.3015, the 10/28 high **

The complete Candlestick Weekly report can be found here:

http://www.dailyfx.com/story/special...010629629.html

** We will use a soft target rather than a hard take-profit order, looking to 1.3015 as the next key juncture but expecting USDCAD to rise substantially higher in the long term.

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__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Ilya,

Thanks for the USD/CAD trade, it looks like it will be a winner. Earlier in the week you mentioined a pending short with GBP/JPY, how is that looking? Given the recent decline, is that pair ready for a breakout?

Thanks again!

Unfortunately GBPJPY failed to close above 150.09, the Fib level I was looking at, so we didn't meet entry conditions there for a trade. The pair still have not broke below the double bottom at 139.00, so at this point I'm on the sidelines waiting for confirmation of a directional bias.

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Ilya, what are your thoughts on shorting the Aud/Usd at the current level?

Hi Ilya, can the stop loss be moved to break even? please advise.

I was about to ask the same question.

Note double tops please.u should takes profits

Dark cloud cover.You should takeprofits long position.
Now,usdcad can not breakout
Attend to equity market and Oil price
G day and G trade.Thanks Ilya spivak

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Techinically, that isn't a dark cloud cover. The dark cloud cover must close below at least the midway point of the previous candle. The previous candles open/close was 422 pips. Fridays candle closed 201 pips down from the open. That isn't halfway...

Looks like a dark cloud cover pattern has formed on the daily chart...what do you think?

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Hi Brad,

Is your thread dated 17/11/2008 is still valid for this pair? This is important as it has now finally broken the 200 SMA and suporing trendline.

On the other hand AUD/USD has some upside potential. So in view of continuting weakness in NZD, should we go long on AUD/NZD at current levels as there is plenty upside potential left in this pair. Please advise. Cheers

SKS you do what you want with those pairs.. There is so much risk in those pairs that even I wont touch them... AUDNZD could go either way at the moment and although I wish a reversal would form in NZDUSD I just dont see it happening yet... So Im pretty skeptical there still... If you have one quick look at the monthly chart of AUDUSD or NZDUSD youll see that both of the pairs are in massive down trends ... No bottoms concreted into place yet...

Have a look at this chart NewTrader... Although that is a dark cloud cover on the chart, it doesnt signal reversal.. Price is in a choppy sideways action at the moment.. But expect an eventual return to new highs...

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Thanks Brad, appreciate your opinion and will stay away for this pair until there is some reversal sign for NZD or AUD. Cheers