AUDCAD - Potential Long Opportunity
After last week's AUD strength we have broken through a significant level that price has been interacting with in the past. This bullish move that occurred will more than likely see a pullback, potentially when price creates the swing high you can also look to draw fibonacci from the impulse, to the peak of the move, as further confluence. You can see the ascending trend line is adding further confluence as it lines up with key market structure. Once price returns to the level the 50EMA should be closer to current market price, potentially acting as a dynamic level of support.
If price returns to the zone (key level + trendline), look for rejection in the form of a bullish candlestick pattern, reversal pattern, or if we see many rejection wicks at this zone. If we don't see rejection, or buyers coming into the market, there is no trade.
Important to react to price action and not predict.
After last week's AUD strength we have broken through a significant level that price has been interacting with in the past. This bullish move that occurred will more than likely see a pullback, potentially when price creates the swing high you can also look to draw fibonacci from the impulse, to the peak of the move, as further confluence. You can see the ascending trend line is adding further confluence as it lines up with key market structure. Once price returns to the level the 50EMA should be closer to current market price, potentially acting as a dynamic level of support.
If price returns to the zone (key level + trendline), look for rejection in the form of a bullish candlestick pattern, reversal pattern, or if we see many rejection wicks at this zone. If we don't see rejection, or buyers coming into the market, there is no trade.
Important to react to price action and not predict.