For the week of 05 May, AUDCAD is very interesting
If you think this pair is in an uptrend, I would draw your attention to the weekly view. You may want to think again.
Moving on to the daily chart, we can see how price was contained within 0.9140-0.8850 for over 7 months. Both these levels are obviously significant so if price has been battling 0.9140 area for the past 4 days, that is an important factor in analyzing this pair.
To understand recent price action it helps to inspect the H4 candles. The pair has been moving in a channel as you can see. I do see a rounding kind of action during the last 20 periods. It looks to me that the pair is ready to start falling.
I am ready to take a short right away, but it would be great to get a small bounce to about 0.9080 region and place a trade there. My stop is at 0.9140 while the initial target is above the support at 0.8870 area. I believe the actual move could be much larger, but in these uncertain times, news flashes can cause sudden expected moves.
I am ready to take a short right away, but it would be great to get a small bounce to about 0.9080 region and place a trade there. My stop is at 0.9140 while the initial target is above the support at 0.8870 area. I believe the actual move could be much larger, but in these uncertain times, news flashes can cause sudden expected moves.
It would be awesome if you gave a "thumbs up" to this post and comments are always welcome. You can follow me to get a notification of trade ideas as soon as I post them too.
As always, please use sound money and risk management in all your trades.
Moving on to the daily chart, we can see how price was contained within 0.9140-0.8850 for over 7 months. Both these levels are obviously significant so if price has been battling 0.9140 area for the past 4 days, that is an important factor in analyzing this pair.
To understand recent price action it helps to inspect the H4 candles. The pair has been moving in a channel as you can see. I do see a rounding kind of action during the last 20 periods. It looks to me that the pair is ready to start falling.
I am ready to take a short right away, but it would be great to get a small bounce to about 0.9080 region and place a trade there. My stop is at 0.9140 while the initial target is above the support at 0.8870 area. I believe the actual move could be much larger, but in these uncertain times, news flashes can cause sudden expected moves.
I am ready to take a short right away, but it would be great to get a small bounce to about 0.9080 region and place a trade there. My stop is at 0.9140 while the initial target is above the support at 0.8870 area. I believe the actual move could be much larger, but in these uncertain times, news flashes can cause sudden expected moves.
It would be awesome if you gave a "thumbs up" to this post and comments are always welcome. You can follow me to get a notification of trade ideas as soon as I post them too.
As always, please use sound money and risk management in all your trades.
Comment:
I bailed out of this trade with a small loss. I don't believe any more that the CAD has any strength at this time.