AUDCAD DAILY CHART
Chart setup: Chart shows monthly pivot points in blue.
Analysis: AUDCAD opened the month below the monthly pivot point "P" indicating a bearish market environment. This pair moved up to monthly pivot point "P" where it ran into resistance. Daily candle then printed a Bearish engulfing candle on the chart indicating a bearish trend setup. The daily candle then printed a Shooting Star on the chart, another bearish trend setup. These two candles are telling us this market wants to move downward from here.
Should the next candle (Monday's Candle) close below the low of the shooting star it will trigger a Short trade. However there needs to be at least a 2:1 reward to risk ratio trade setup before price moves down to support and monthly pivot point "S2". Should the reward to risk ratio be less than 2:1 this would negate the short trade setup.
I will post again at the end of Monday's trading session should price action develop into a valid trigger to go Short!
Chart setup: Chart shows monthly pivot points in blue.
Analysis: AUDCAD opened the month below the monthly pivot point "P" indicating a bearish market environment. This pair moved up to monthly pivot point "P" where it ran into resistance. Daily candle then printed a Bearish engulfing candle on the chart indicating a bearish trend setup. The daily candle then printed a Shooting Star on the chart, another bearish trend setup. These two candles are telling us this market wants to move downward from here.
Should the next candle (Monday's Candle) close below the low of the shooting star it will trigger a Short trade. However there needs to be at least a 2:1 reward to risk ratio trade setup before price moves down to support and monthly pivot point "S2". Should the reward to risk ratio be less than 2:1 this would negate the short trade setup.
I will post again at the end of Monday's trading session should price action develop into a valid trigger to go Short!