Prices have broken down sharply to quickly reach the lower trend line of the contracting triangle pattern. This also completes the bullish cypher AND also a bullish crab pattern I had previuosly missed (it actually occurred on a lower TF but is valid nonetheless).
Look for prices to retrace back up into the upper trend line and continue to trace out the triangle as per Scenario #1 (see Related Ideas: "Analysis: AUDUSD - Patterns! Lots 'O Patterns! Short & Medium TF") in my previuos post.
*NOTE Take care to put your S/L in the proper place and I would suggest to give it a little bit of wiggle room if you can handle it (+/- 10 pips) as the volatile nature of the current market in reaction to the move in the USDCAD pair is warranted.
*Also bear in mind that it is a short distance back to the upper trend line so not that much pips to be had in a LONG trade. Choose whether to take the trade or not with that in mind.
"The Market does what the market does regardless of how many lines and shapes you throw in front of it. It is NEVER wrong!"
Ahhhh....sometimes, we can just get in the way of ourselves thinking too much! Sometimes, the simplest answer is the right answer. Simple ABC correction is all there seems to have been! New lows would confirm this. Back to the drawing board...er, I mean charts.
TradeYodha
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exactly similar set up on NZDUSD too
EverythingForex
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Wouldn't be surprised. Kiwi and Aussie highly correlated. I don't normally trade the Kiwi though if I'm already trading the Aussie since it'll be like doubling down on the Aussie trade.But now that you mention it, I'll go take a peak. Thanks!