AUDCAD BULLISH MOMENTUM
AUDCADBulls seem to be maintaining power and keeping the uptrend momentum going on the daily timeframe. This is my view of this pair and where it may go, I will be using the daily frame to analyse the long term view and the 4 hour timeframe to find potential entry points or change in behavior which may affect the overall Bias. Follow me and keep upto date with all potential setups.
Double tops on the 0.236 fib retracement; bearish signal rejected and bulls maintained
An uptrend, with an extreme long day that hit the top followed by a hanging man where the
Bears tried pushing price down and met with more bullish pressure and retraced back up to
The recent high (0.92017) similar to previous zone.
This is the 2nd time this zone is tested with a hanging man candle forming on that candle, minor resistance formed at this level. It seems like the bears want to join the party at this point, this is a zone to be wary of a potential reversal or consolidation. Both times Bulls pushed to this
Level they were followed by strong bearish candles (Hanging man & Gravestone signals). It seems as if Bulls are struggling to break this zone for now.
I will be placing a buy position above this zone, a break above this resistance will be affirmation of the Bull power they currently possess and trend continuation, however should this zone not break this will confirm how strong the resistance is and may be a good level to take note of.
The bearish pressure that broke the fib retracement level 0.263 & 0.382 is a warning sign of the
Bearish pressure that is rejecting the upward momentum, however the Bulls are still in the game
And not allowing bears to take advantage. The 0.382 fib level (price 0.90670) is one to be watched on this chart, with a potential buy. The histogram on the MACD is still relatively thin indicating the failing downward pressure of the bears. We will monitor divergence of the MACD
As price develops.
Scaling down onto the 4hour timeframe we can see the bearish pressure on the chart. The 10EMA crossover the 20SMA after a series of bearish signal candles (Gravestones) seems to be enough to look at potential downtrend, however the spinning top that followed prior the intense Downward momentum may be seen as a weakness in bears power. The bulls tried
Pushing power back up and failed, this move was followed by a strong downward pressure to the fib retracement zone, also forming a bearish signal hammer. The bulls are getting back in charge. So we keep an eye on the progression of the current 4hrs candle, where it closes will
Give us an indication of the current price direction and potential entry points.
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