AUDCAD Conflicting Wedge-Pennant Formations

FX:AUDCAD   Australian Dollar/Canadian Dollar
729 14 12
Not so much a trade idea but more of an observation whilst going through my top down pre market analysis.

We can see that on the daily chart , this market is putting what we commonly refer to as a bullish pennant pattern. Typically we see this formation break out to the upside.

If we drop down to the 60 min time frame, we can see that market is putting in a bearish wedge pattern. We typically see this formation break to the downside as we did with the AUDUSD             trade idea I put out before Christmas.

It will be interesting to see what happens on this pair and we will be keeping an eye on it during our London Live Trading Sessions this week.

Im sure the breakout traders will have this on their radar too!

Comment: Looks like the wedges breakout played out in the end.
We will be looking for a pull back into structure to get involved in a short

nice, looking forward to the pullback to structure
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IF we get a pull back into structure. We never know what the market is going to do, despite what some people might say. We only know through backtesting and discretion what market is "probably" going to do.
alex.ofx J_Graystone
yes, we'll see what it plays out into. thanks!
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Nice find man! Yea that's an interesting setup!
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Thought you would like this one! Broke out exactly the same as the AUDUSD trade idea I did before xmas! a writer downer ;-)
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PateSkpate J_Graystone
Yea good idea.. Could be turning into a Descending Triangle on the Daily chart, now that the LTF Wedge gave way :)
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In the meantime I have made my own analysis on this pair and I must say that maybe I was wrong on the last statement. I think there is a ZigZag correction in the making now, what we saw as a pennant is now a symmetrical triangle but it will be a zigzag, and what we saw a wedge is really a pennant (with continuation implications). So, if price action will break the pennant to the downside, we can enter short and ride it till the 1.27 fib extension of the previous leg which is the completion of the zigzag. Just my opinion, but I will trade it since I like trading breakout of structure very much! Good luck! :)
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Koryphaeen PRO Koryphaeen
Awesome. I don't trade breakout patterns so im sure you know far more than me if you have a specific strategy. As I said, this is more of an observation from me rather than an idea. Nice. Good Luck!
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Koryphaeen PRO J_Graystone
it is never enough knowledge one cain gain in trading...that's a fact ;) by the way, If you trade advanced patterns, then you trade breakout patterns as well... the AB=CD in a Gartley is sometimes a zigzag correction representing wave 2 of a 5 wave structure... :) and after moving stop to BE at 0.382, waiting for the 0.618 target is a breakout trade
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