AUDCAD (S) Trade Idea Brewing - 0.942 resistance
Updated
AUDCAD has been moving in a range for almost a month now.
With 0.9420 holding as strong resistance! Price has failed to close above this level every time is attempts to.
June has closed as a monthly candle rejecting the 50 ema and 0.942.
Weekly candles don't look very clear and the Daily is clearly ranging.
We need to understand traders have been trying to short this pair for almost a month now. Where are most stoplosses placed in that case? Probably anywhere between 0.9420 and the highs of 0.9445
The 4 hrs chart is once again sitting at the highs of 0.9420 and just closed as a doji candle. (decelerated/ reversal candle stick)
Having mentioned where stop losses are most likely placed, I wouldn't be looking into jumping into this pair just yet. There is a possibility we can still have a manipulative spike to the upside, take out stoplosses placed above, and then have price tumble down. Another option is we could have a news announcement move price to the downside, without eliminating stops above 0.942, instead using the news as momentum to the downside.
When looking at other AUD pairs, technicals show that we could be seeing AUD weakness in the near future. The next step will be to see which pair presents the cleanest setup, and filter them out in order to execute.
With 0.9420 holding as strong resistance! Price has failed to close above this level every time is attempts to.
June has closed as a monthly candle rejecting the 50 ema and 0.942.
Weekly candles don't look very clear and the Daily is clearly ranging.
We need to understand traders have been trying to short this pair for almost a month now. Where are most stoplosses placed in that case? Probably anywhere between 0.9420 and the highs of 0.9445
The 4 hrs chart is once again sitting at the highs of 0.9420 and just closed as a doji candle. (decelerated/ reversal candle stick)
Having mentioned where stop losses are most likely placed, I wouldn't be looking into jumping into this pair just yet. There is a possibility we can still have a manipulative spike to the upside, take out stoplosses placed above, and then have price tumble down. Another option is we could have a news announcement move price to the downside, without eliminating stops above 0.942, instead using the news as momentum to the downside.
When looking at other AUD pairs, technicals show that we could be seeing AUD weakness in the near future. The next step will be to see which pair presents the cleanest setup, and filter them out in order to execute.
Note
Note
As mentioned above, thought the 4 hr gave us a doji close at resistance, it's not enough to enter a trade.We can see price is now pushing back above 0.9420
Still waiting for price to show me a strong rejection of this region.
Note
Price never gave a strong enough rejection on the 4 hr for me to take a trade short here. Which prevented a potential 1% loss.I still see a potential short trade developing here. We have broken back into 1 hr zone, taking out the highs above 0.942
First trade could be with a deeper break down on the 1 hr chart and pullback to 0.9420 area.
OR safest trade will be once we break the 4 hr trendline, and pullback to retest the trendling + 4 hr 50 ema.
Note
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