AUD/CAD Bearish Rejection Setup – Short Opportunity from Key ResEMA 200 (blue line): 0.86328 – long-term trend indicator.
EMA 30 (red line): 0.86473 – shorter-term momentum.
Price is currently trading below the EMA 200, and approaching the resistance zone, hinting at a possible short opportunity.
🟪 Key Levels Highlighted:
Entry Point: Around 0.87240, near the upper boundary of the resistance zone.
Stop Loss: Just above resistance at 0.87758.
Target Point (EA TARGET POINT): At the demand/support zone of 0.84734.
📉 Bearish Setup Summary:
Risk/Reward Ratio: High – the chart targets a ~2.78% downside move (~242 pips), suggesting a favorable setup.
Bearish Structure:
Strong prior downtrend leading into a potential lower high formation.
Price is reacting to a known supply zone.
A possible double top or resistance rejection pattern forming.
🧠 Confluences Supporting the Trade:
EMA alignment – price below the 200 EMA.
Bearish reaction at supply zone.
Clean drop zone – minimal structure between entry and target area.
Bearish rejection pattern potentially forming.
⚠️ Watch Out For:
Break and hold above 0.8775 would invalidate the setup.
Fundamental catalysts (especially AUD or CAD-related news) may add volatility.
A strong bearish rejection candle around the entry zone would increase confidence in the short position.
