AUDCAD Potential descending Channel
AUDCAD seems to be aligning for a potential long trade in the next few days/hours. The move could offer a decent r:rw however we need confirmation before committing.
Analysis:
We have many technical confluences from different timeframes here.
Monthly: Even though last month closed as a strong bearish engulfing candle, price is currently re-testing the Monthly 50EMA and we can expect price to at least bounce off it.
Weekly: Price is overall trending upwards, but we are currently in a pullback. This pullback is overextended and showing signs of exhaustion at strong dynamic support with the 50EMA on the way alongside an area of previous support and resistance
Daily: Price has been on a bear trend for a long time but it's not showing bearish momentum as price becomes more and more corrective as it approaches key support at the 0.946 area.
Intraday: Price is making lower highs and lower lows with decreasing momentum as it starts to show MACD divergence. We can see a forming structure which still needs more development.
Trading idea:
I will be waiting for price to create another leg short, then if price gives a proper rejection off the lower boundary of the descending channel/wedge in the intraday charts, I would go long with a very solid r:rw.
A conservative target would be previous highs at the 0.956 area, however I think there could be potential for price to retest resistance at the 0.97 area.
hope someone found this helpful!=)
Let me know if you see something else in the chart
Analysis:
We have many technical confluences from different timeframes here.
Monthly: Even though last month closed as a strong bearish engulfing candle, price is currently re-testing the Monthly 50EMA and we can expect price to at least bounce off it.
Weekly: Price is overall trending upwards, but we are currently in a pullback. This pullback is overextended and showing signs of exhaustion at strong dynamic support with the 50EMA on the way alongside an area of previous support and resistance
Daily: Price has been on a bear trend for a long time but it's not showing bearish momentum as price becomes more and more corrective as it approaches key support at the 0.946 area.
Intraday: Price is making lower highs and lower lows with decreasing momentum as it starts to show MACD divergence. We can see a forming structure which still needs more development.
Trading idea:
I will be waiting for price to create another leg short, then if price gives a proper rejection off the lower boundary of the descending channel/wedge in the intraday charts, I would go long with a very solid r:rw.
A conservative target would be previous highs at the 0.956 area, however I think there could be potential for price to retest resistance at the 0.97 area.
hope someone found this helpful!=)
Let me know if you see something else in the chart
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