AppId is over the quota
By Walker England, Trading Instructor, 25 October 2011 14:16 GMT 
The USD/CAD has been giving us mixed signals throughout 2011. Currently, the Pair is trading near the parity figure, which has been traded through previously in January, and September. Currently daily support is found by connecting the July 26th low at .9405 with the September 16th low at 97.84. Currently price is testing a third touch of support and is awaiting the pair to either bounce or break.
Taking Price in to a 4Hour chart we can see our downtrend established from our October 4th high of 1.0656. Price has been moving steadily downward to today’s low of just under parity, at .9989. If price is to make new lows it must stay under resistance found at 1.0190, denoted by our 78.6%Fib line. A break above this level and a new high on the chart would indicate a validation of our daily support line seen above. 
My preference is to sell the USD/CAD against its 78.6% retracement at the 1.0190 level. Stops should be placed outside of the previous high at 1.0250. Limits should look for 1.0070 or better for a clear 1:2 Risk reward ratio. Secondary targets may search for lower lows under parity. Alternative scenarios include price breaking through resistance and moving on to new highs indicating a bounce off our daily trend line. Additional Resources Support and Resistance Video Trading Breakouts ---Written by Walker England, Trading Instructor To contact Walker, email wengland@fxcm.com.Follow me on Twitter at @WEnglandFX. To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to wengland@fxcm.com.DailyFX provides forex news on the economic reports and political events that influence the currency market.
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Taking Price in to an 8Hour chart we can see resistance above 80.16 on the AUD/JPY by utilizing a 200 MVA. Price has continued to trade under this line of resistance dating back to July of 2011. Moving into its fourth month of a downtrend, we will begin looking to trade the AUD/JPY short with the trend by utilizing the MACD indicator. Potential signals for entry will include the MACD and Signal line crossing above the zero line. 
My preference is to sell the AUD/JPY on a crossover of the MACD & Signal line. Orders should be placed to sell the AUD/JPY as near resistance as possible at 80.00. Stops should be placed over resistance near 82.00. Limits should be placed at 76.00 for a clear 1:2 risk reward ratio. A second long term target may be placed at 70.175 on a breakout to new lows. Alternative scenarios include price breaking through resistance and price challenging Sept 2011 highs. Additional Resources Trading with MACD Identifying the Trend Money Management --- Written by Walker England , To contact Walker , please email http://Instructor@dailyfx.com/. You can follow on Walker onTwitter @WEnglandFX. To be added to Walkers’ distribution list, please send an email with the subject line “Notification,” to WEngland@fxcm.