AUDCAD Bearish Setup: Potential Short Opportunity at Resistance
Updated
The AUDCAD pair is testing a key resistance zone, signaling a potential short opportunity. Here's the detailed analysis:
Key Technical Levels:
The price is testing the red supply zone near 0.9150–0.9175, which aligns with the 50 EMA and 200 EMA, acting as dynamic resistance.
Multiple bearish "3s-Bear" signals in the trend suggest sellers are in control.
Indicators:
The Stochastic RSI is in the overbought region, indicating potential bearish momentum ahead.
Volume is declining as the price approaches resistance, showing hesitation in the bullish move.
Entry Point: A sell position can be considered if the price fails to break above 0.9175 and forms a rejection pattern (e.g., bearish engulfing or shooting star candlestick).
Stop Loss: Place a stop loss above the 0.9200 level to allow room for volatility.
Take Profit:
Target 1: 0.9125 (recent demand zone).
Target 2: 0.9100 (stronger support level below).
Risk-Reward Ratio: This setup offers a favorable risk-reward ratio of approximately 1:2 if targets are achieved.
This setup assumes that the bearish trend will continue based on resistance rejection and overbought oscillators. If the price closes above 0.9200, the bearish bias will be invalidated. Ensure proper risk management and adjust positions as needed.
Key Technical Levels:
The price is testing the red supply zone near 0.9150–0.9175, which aligns with the 50 EMA and 200 EMA, acting as dynamic resistance.
Multiple bearish "3s-Bear" signals in the trend suggest sellers are in control.
Indicators:
The Stochastic RSI is in the overbought region, indicating potential bearish momentum ahead.
Volume is declining as the price approaches resistance, showing hesitation in the bullish move.
Entry Point: A sell position can be considered if the price fails to break above 0.9175 and forms a rejection pattern (e.g., bearish engulfing or shooting star candlestick).
Stop Loss: Place a stop loss above the 0.9200 level to allow room for volatility.
Take Profit:
Target 1: 0.9125 (recent demand zone).
Target 2: 0.9100 (stronger support level below).
Risk-Reward Ratio: This setup offers a favorable risk-reward ratio of approximately 1:2 if targets are achieved.
This setup assumes that the bearish trend will continue based on resistance rejection and overbought oscillators. If the price closes above 0.9200, the bearish bias will be invalidated. Ensure proper risk management and adjust positions as needed.
Trade active
Note
Target 1 reached 0.9125 , close partial profitTrade closed: target reached
Target 2 reached 0.9100 , close for full profit
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