AUDCAD SHORT
Updated
Last week I posted about a long setup on the shorter timeframe which resulted in a trail stop being hit with 40Pips gain, this week we have taken a longer term view and came down to a potential reversal bias on the pair. Please note we aim to look for potential setups in the shorter period, we share the psychology behind the decision making process in our trades.
Taking a look at the weekly timeframe it shows a weakening in bullish pressure, the slope of the uptrend has been weakening, signaling a potential reversal or consolidation upcoming. There is also minimal upward pressure from the previous week, price opened and closed relatively very close to one another. The bulls are losing strength as they keep pushing prices higher. The hanging man candlestick formed signaling a potential bearish reversal is also a notice we have put on our journal building up to this position.
Scaling it down to the daily timeframe; we can see the rejection zone between 0.92017 & 0.91671, this zone was retested 3 times recently. This tells us Bears are not allowing Bulls to expand further. This zone is proving to be more than just a minor resistance as price keeps respecting it more.
The 4 hour timeframe displays how the bears pushed price extremely low after price bounced at the resistance zone formed on the daily timeframe. We can see a bearish head & shoulder pattern formation on this zone,
Our Bias on this pattern is a potential reversal, we will also manage the trade well looking at market sentiment about the economic data coming out of Canada this week.
Short @0.91610
SL @0.92034
TP @0.90815
Expect a potential break of the resistance and trend continuation on the weekly timeframe, so we will also watch price action for the next few hours and plan for a potential upside.
Remember Risk management is key.
Taking a look at the weekly timeframe it shows a weakening in bullish pressure, the slope of the uptrend has been weakening, signaling a potential reversal or consolidation upcoming. There is also minimal upward pressure from the previous week, price opened and closed relatively very close to one another. The bulls are losing strength as they keep pushing prices higher. The hanging man candlestick formed signaling a potential bearish reversal is also a notice we have put on our journal building up to this position.
Scaling it down to the daily timeframe; we can see the rejection zone between 0.92017 & 0.91671, this zone was retested 3 times recently. This tells us Bears are not allowing Bulls to expand further. This zone is proving to be more than just a minor resistance as price keeps respecting it more.
The 4 hour timeframe displays how the bears pushed price extremely low after price bounced at the resistance zone formed on the daily timeframe. We can see a bearish head & shoulder pattern formation on this zone,
Our Bias on this pattern is a potential reversal, we will also manage the trade well looking at market sentiment about the economic data coming out of Canada this week.
Short @0.91610
SL @0.92034
TP @0.90815
Expect a potential break of the resistance and trend continuation on the weekly timeframe, so we will also watch price action for the next few hours and plan for a potential upside.
Remember Risk management is key.
Order cancelled
The Bulls got vicious and broke the minor resistance, this is a good indicator of a potential trend continuation. Take a look at the next analysis.
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