AUDCAD Weekly S/R| Volume Climax| Bearish Divergence| Local S/RRepost**
Evening Traders,
Second analysis update – AUDCAD- Price testing weekly S/R after an oversold bounce play, correction at this point is likely as this is a technical trade location.
Points to consider,
- Oversold bounce play
- Weekly S/R Pivot (Resistance)
- Local S/R Flip Retest
- Technical Bearish Divergence
- Evident Volume Climax
AUDUSD had an oversold bounce play from swing low, currently respecting Weekly S/R which allows us to have a bearish bias.
The immediate local S/R has been flipped; price retesting and holding this level will confirm an S/R Flip retest.
Price action has a technical bearish divergence; this indicates immediate weakness in the market however validation will be upon an impulse down.
The volume profile has an evident volume climax, this usually marks temporary tops in a trend. This further adds to the probability of an immediate correction.
Overall, in my opinion, AUDCAD is a valid short with defined risk above weekly S/R. Price action is to be used upon discretion/management of trade.
Hope this analysis helps!
Thank you for following my work!
And remember,
“If you don’t respect risk, eventually they’ll carry you out.” – Larry Hite
