AUDCAD (Daily) SHORT IDEA: Reaching a weekly resistance Zone!
TECHNICAL ANALYSIS:
-The market has been moving with a strong uptrend until the end of July 2020, keeping the price over the EMA 50, that's a nice confirmation of the market's strenght.
-The resistance zone at 0.96624, rejected the price, and it failed any attempt to break it again. During this consolidation phase, the market was losing momentum and the price was overbought. (It was a clear sign that the market was losing the strenght to carry on the same trend)
-The market then got a correction, it broke the EMA 50 and bounced on the support level at about 0.92454 before starting a new uptrend. (The correction match perfectly with the 0.50% Fib. Retracement)
CONCLUSION:
The market is clearly following an ascending channel but it is also reaching an important weekly resistance level that already rejected the price in the past.
I definitely don't suggest to open any short position right now, but I suggest to wait the price action on the resistance level to understand the next market movement.
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-The market has been moving with a strong uptrend until the end of July 2020, keeping the price over the EMA 50, that's a nice confirmation of the market's strenght.
-The resistance zone at 0.96624, rejected the price, and it failed any attempt to break it again. During this consolidation phase, the market was losing momentum and the price was overbought. (It was a clear sign that the market was losing the strenght to carry on the same trend)
-The market then got a correction, it broke the EMA 50 and bounced on the support level at about 0.92454 before starting a new uptrend. (The correction match perfectly with the 0.50% Fib. Retracement)
CONCLUSION:
The market is clearly following an ascending channel but it is also reaching an important weekly resistance level that already rejected the price in the past.
I definitely don't suggest to open any short position right now, but I suggest to wait the price action on the resistance level to understand the next market movement.
POTENTIAL PROFIT: 150 PIPS
If you enjoy my FREE Technical Analysis, let me know that with a big LIKE, I'll be so glad!
Have you got some similar or interesting idea? Feel free to leave a comment below sharing your idea!
Are you interested getting more FREE Technical Analysis like this? SUBSCRIBE my channel and you won't miss anything!
Trade Safe,
Gianni
