AUDCAD: Inflection point at the critical level. Good R/R
Commentary:
- We can see that the pair has been in a state of decline since the end of November 2016. Despite some subjectivity, the indicated trend line touches four price extremes formed in the downtrend.
- We can also see that the pair touched several times the level of 0.91500, which has established itself as a solid support level.
- The drop below this level in September last year was held with a relatively small objection from buyers, after which the level was re-affirmed as resistance. During the upward correction from the beginning of March, the pair returned to this level.
- Given the fundamental expectations for AUD, the trading idea may consist in a short position on the pair with a short stop loss in the area of intersection with the trend line and wide profit target which can be corrected later.
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- We can see that the pair has been in a state of decline since the end of November 2016. Despite some subjectivity, the indicated trend line touches four price extremes formed in the downtrend.
- We can also see that the pair touched several times the level of 0.91500, which has established itself as a solid support level.
- The drop below this level in September last year was held with a relatively small objection from buyers, after which the level was re-affirmed as resistance. During the upward correction from the beginning of March, the pair returned to this level.
- Given the fundamental expectations for AUD, the trading idea may consist in a short position on the pair with a short stop loss in the area of intersection with the trend line and wide profit target which can be corrected later.
Please like the post if you find this analysis useful. Thank you.