[B]AUDCAD weekly
long
entry:[/B] buy at market (.9970)
[B]stop loss:[/B] .9870
[B]profit target:[/B] to be determined (maybe 1.0500)
[B]explanation: [/B]risk is worth taking considering the very nice RR (>5:1). solid support, potential reversal.
Very nice setup, but let’s see if it holds with the RBA joining the central bank easing party. We should see if it does hold in the next couple of weeks. Thanks for pointing that out!
AUD/CAD during the recent week was in a strong and consistent uptrend that buyers were successful in achieving the highest price of 1.03155. Right now price in long time frames such as monthly, weekly and daily is above 5-day moving average and warns about price increase in long period of time. Price has been stopped from more ascend by reaching to the specified resistance levels(Support=Resistance) in the picture below and with exit of some buyers from their trades at the end of 26th and 28th days, the Shooting Star and Hanging Man candlestick patterns have been created. These candles shows vulnerability and indecision market in ascending or descending of price that for confirmation it needs closing of a bearish candle.
As it is obvious in the picture below between the bottom price of 0.91701 and the top price of 1.03155, there is a AB=CD harmonic pattern with the ratios of 61.8 and 127.2 that with completion of the D point (also formation of butterfly pattern in CD wave), there is a potential for descending of price.RSI indicator is in saturation Buy area and divergence mode with the price chart that confirms the current Top price and warns about descending of price during the next candles.One of the important warnings for decreasing of is breaking of supportive level of 1.01809 (Low level of price changes in the previous daily candle).
