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Audcadsetup

AUD/CAD: head and shoulders top pattern – further downside?The AUD/CAD pair formed a head and shoulders top pattern with neckline breakdown earlier this month. This pattern is similar to the one seen in AUD/USD but shows a bit more room to the downside towards July 2022 lows. The RSI pointing southward and the MACD crossing the zero line indicate that some weakness could persist in the short term. From a monetary policy perspective, the Bank of Canada is now acting more hawkishly than the Reserve Bank of Australia. The BoC raised its overnight rate target by 75 basis points (bps) to 3.25%, while the RBA hiked by 50bps to 2.85% this week. The CAD benefits not only from the size of the relative hike, but also from the forward guidance. With inflation expected to rise, the BoC has stated that interest rates will need to rise further. On the other hand, the RBA Governor Philip Lowe said that the case for slower pace of hikes is growing, and that will be dependent on the upcoming data. The recent breakdown of the ascending channel formed in July 2022 by the 10-year yield spread between Australian ( AU10Y ) and Canadian government bonds ( CA10Y ) suggests that markets now expect interest rates to rise relatively more rapidly in Canada than in Australia. Idea written by Piero Cingari, forex and commodity analyst at Capital.com
Editors' picks
by Capitalcom
11
AUDCAD - 240 MINS CHARTThe Structure looks good to us, waiting for the this to correct and then give us these opportunities as shown on this instrument (chart). Note: its my view only and its for educational purpose only. only who has got knowledge in this strategy will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. we do not get into bullish or bearish traps. we anticipate and get into only big bullish or bearish moves (Impulsive moves). Just ride the bullish or bearish impulsive move. Learn & Know the Complete Market Cycle. buy low and sell high concept. buy at cheaper price and sell at expensive price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support....
Short
by Tradelikemee
2
AUDCAD BUY- 70+ pips? Once again with my favourite strategy, we have spotted a potential appreciation of AUDCAD: • 3 MA's cross inside the bullish candlestick . • RSI crosses from under 50 to over 50 in the candlestick where the 3 MA's touch. • All while the Ichimoku convergence line crosses the base line during that candlestick . • Additionally, negative MACD decreasing, looking like it is reversing, with the fast EMA drifting away from the slow EMA . • Only factor that does not go in our favour here is the fact that we are opening a long under the ichimoku cloud. We could expect AUDCAD to appreciate over the next 7-8 hours. My entry: 0.89744 TP1: 0.9010 TP2: 0.9045 SL: 0.8918 This is my view, do share your insights!
Long
by mbarbar
2
AUDCAD short after breakout and pullback for the week of 11 JulyPreceding trend – has been bearish since April. Current price action – Pullback to a major S/R zone. Factors of confluence: - Price is below the 50 EMA. - The breakout was very strong – note the large bearish candle that shows momentum with the bears. - The pullback is quite weak – note that it has taken 5 bullish candles to recover the gains made by the bears. I am not looking for a deep retracement in the zone because of the apparent strength of the bears. This will mean a wider stop but we still have the potential for a +2.3R trade. If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications. Always use sound money and risk management and stay patient in all your trades.
Short
by Trading_Vista