Head and shoulders on AUDCAD daily unfolding
I've been waiting for this setup to unfold for a while now (I was already eyeing the setup in my weekly outlook 2 weeks ago). For the past months, we could see a couple of beautiful swings on the daily for AUDCAD. The price has now reached the previous swing high, which was a strong reaction point last time.
As is often the case for a reversal, we can see a head and shoulders pattern forming. The neckline isn't yet broken, but a very nice pin and drive pattern is now showing. This pattern is often the precursor of a big move.
Given some patience, this could become a nice entry. I'm looking for the 1.01600 level to break first.
As is often the case for a reversal, we can see a head and shoulders pattern forming. The neckline isn't yet broken, but a very nice pin and drive pattern is now showing. This pattern is often the precursor of a big move.
Given some patience, this could become a nice entry. I'm looking for the 1.01600 level to break first.
Note
Aided by positive Canadian GDP numbers, we are now seeing the break of the neckline. The 4H shows a nice momentum candle; if it can close around this level, we might get an entry.
Note
The price is now breaking below the most conservative neckline as well. Assuming that the current candle closes below the break, I can see more downside momentum in the upcoming days.Note
The Canadian employment change was much better than expected (19.4K vs 5.0K expected), which only helps our trade. Price is moving along nicely now.
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