AUD/CAD: More bearish Continuation!
What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the AUD/CAD, trying to translate the market information with a full technical analysis on different time frames perspectives.
For a better understanding of my bearish perspective, let’s have a quick look on the monthly timeframe:
Overall the market is moving to the downside, a strong bearish impulse got a breath, closing the last month with a big red candle, sign of a good bearish pressure.
Switching to the weekly timeframe:
As you can see on the chart, the price quickly retraced back after the bearish impulse, and it is currently retesting a previous support turned now in a resistance level, that coincides with the 0.38% of Fibonacci retracement.
I would expect some consolidation before a possibility to see a trend continuation.
On the daily timeframe:
The market consolidated for few months between the two key levels, breaking the support level at the beginning of December.
Back to the 4 hours timeframe:
The price reached the dynamic trendline and the resistance level, losing momentum close to this area (see the last few candles with a smaller body)
Before planning my short position on this trade I will be waiting for bearish price action and a strong red momentum candle with a RRR 1:2 or greater.
Potentially my SL would be above the resistance level and the take profit around the next support level, manually moving my SL on every swing high.
A breakout to the upside would invalidate my trade and no action will be taken on this market.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
For a better understanding of my bearish perspective, let’s have a quick look on the monthly timeframe:
Overall the market is moving to the downside, a strong bearish impulse got a breath, closing the last month with a big red candle, sign of a good bearish pressure.
Switching to the weekly timeframe:
As you can see on the chart, the price quickly retraced back after the bearish impulse, and it is currently retesting a previous support turned now in a resistance level, that coincides with the 0.38% of Fibonacci retracement.
I would expect some consolidation before a possibility to see a trend continuation.
On the daily timeframe:
The market consolidated for few months between the two key levels, breaking the support level at the beginning of December.
Back to the 4 hours timeframe:
The price reached the dynamic trendline and the resistance level, losing momentum close to this area (see the last few candles with a smaller body)
Before planning my short position on this trade I will be waiting for bearish price action and a strong red momentum candle with a RRR 1:2 or greater.
Potentially my SL would be above the resistance level and the take profit around the next support level, manually moving my SL on every swing high.
A breakout to the upside would invalidate my trade and no action will be taken on this market.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
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Disclaimer
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