Confluence Set Up AUDCAD for Potential Rally
AUDCAD reversed from a daily ascending trendline that lined up with 61.8 Fibonacci retracement of the advance from 0.8903 and broken out of daily descending trendline.
Price also broke the daily counter trend line structure and it's currently retesting it inline with key support, and descending trendline.
Price has the potential to move higher from or near the current level and rally towards the resistance with 1.236 and 1.618 extensions as indicated on the chart.
This setup remains valid as long as the Invalidation Level at 0.8966 remains intact.
What're your thoughts about AUDCAD? Let's discuss this in the comment.
Good Luck!
Veejahbee
Price also broke the daily counter trend line structure and it's currently retesting it inline with key support, and descending trendline.
Price has the potential to move higher from or near the current level and rally towards the resistance with 1.236 and 1.618 extensions as indicated on the chart.
This setup remains valid as long as the Invalidation Level at 0.8966 remains intact.
What're your thoughts about AUDCAD? Let's discuss this in the comment.
Good Luck!
Veejahbee
0.90027 has been identified as another key level, which we'll regard as a minor invalidation level as price should stay above this level in the short term for the bullish bias to remain intact.
The advance from 0.90027 can be easily be labeled as a five-wave pattern, which represents the direction of the trend. The subsequent move from the top is correction, which must not trade below wave (1) low. This has greatly reduced the risk of this trade and boost the risk-reward ratio, a conserve-aggressive entry. :joy::blush: