we have had AUDCAD on our radar for quite some time and were hoping to get a positive test of teh weekly resistance followed by a reversal candle.
As it stands on both, the weekly as well as the , the pair will dip into a correction, which brings up multiple possible scenarios:
1) Dip into the intermediate target zone, followed by the alternative bounce back scenario. It is a likely option and should definitely be watched. However, it will really only depend on the momentum we will have on the clock, as soon as we reach the zone. A straight cut through it would open doors for our optimal scenario.
2) A full correction to the 'root' of the current up-swing with a risk/chance ratio of 1:4 (with an aggressive stop loss). Again, it will depend on what really happens down there. A straight drop under the Primary target zone would open up even lower targets.
A very attractive setup that is, in our opinion, worth a punt. Therefore please not the following:
Due to a possible conflict of interest, we need to instruct you that we have opened a live short position, based on the analysis above.
Good luck everybody!