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Retest-structure

USDCAD - Consolidation & Reversal I spent the majority of the past few months being very bearish on the USDCAD, even up to a few weeks ago as we violated our previous structure lows. The market gave us no follow through, consolidated and has now given us a bullish rotation setup. The area in which i have on my radar is a retest of the previous structure highs that were recently created followed by a continuation to the 2 structure levels that I have identified in purple. it's important not to let our pride outweigh our analysis, meaning that just because we make a prediction one week, doesn't mean we have to stick with it until it becomes true. If the market gives us reason to change opinion, we must obey and not let our trading pride stand in the way of good decision making. Akil
Long
by Akil_Stokes
10
EURAUD long after reversal and break of resistance levelLast week, we've seen the reversal setup on EURAUD finally materialise. The bullish divergence (price made lower lows while RSI made higher lows) was another confirmation, but the rejection of the lower support level followed by the very bullish move up left little doubt. On Wednesday, price already tested the resistance level (indicated by the black horizontal line) but initially rejected it. On Friday though, price broke finally through it and closed comfortably above. There's still plenty of upside for the pair and depending on what happens Monday, good entry possibilities could be on a retrace to the resistance-turned-support. The first take profit level would be at a resistance zone at around 1.50600 (for a R:R of about 1:1.6) but further profit levels are definitely possible, up to the longer term resistance area at 1.55100. Good luck trading! Please visit smartforexlearning.com and follow us: - on Twitter: twitter.com - on Facebook: www.facebook.com - on Google+: plus.google.com
Long
by UnknownUnicorn553472
AUDCAD uptrend broken, now expecting a move further downThe longer uptrend on AUDCAD was broken at the end of last week, after the pair tested the strong resistance level (visible on the Daily) and broke through the 1.0000 level quite easily. After a retest of that level, sellers got in control and pushed the price down. This provides us with a good opportunity to ride the newly formed trend. I expect sellers to push the pair down further to the support area indicated on the chart, whereafter we'll probably see a rebound to test one of the resistance levels, either the 0.99670 level or even the 1.0000 level. I'll be looking at price action patterns and strong price reversal signals around these areas to indicate that the pair is ready for a move further down. There's at least 2 TP levels, the first one being at the first support area and the second one being at the lower support level. Overall, this provides an excellent R/R of > 2.5, with potentially even more if TP2 gets hit as well. Events to keep in mind are the RBA's meeting minutes report on Tuesday and the Canadian CPI announcements on Friday. Good luck trading! Please visit smartforexlearning.com and follow us: - on Twitter: twitter.com - on Facebook: www.facebook.com - on Google+: plus.google.com
Short
by UnknownUnicorn553472