Hello dear friends and traders. Let's take a look at AUDCAD and explore the potential selling opportunity in this pair.
As seen in the chart, we have a 4-hour bearish market structure where the price is creating lower highs and lower lows. Consequently, we are only interested in taking short positions for the moment.
After the price formed a recent low, it started to develop a bullish corrective move that ended up testing our bearish trendline, coinciding with a static resistance area. Now, if you examine the 1-hour timeframe chart, you'll notice that the price attempted to go above our horizontal arrow line but failed to close above it. This suggests that the recent bullish move could be considered a liquidity-taking activity, and now that the price failed to close above, we may consider opening a sell position.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
As seen in the chart, we have a 4-hour bearish market structure where the price is creating lower highs and lower lows. Consequently, we are only interested in taking short positions for the moment.
After the price formed a recent low, it started to develop a bullish corrective move that ended up testing our bearish trendline, coinciding with a static resistance area. Now, if you examine the 1-hour timeframe chart, you'll notice that the price attempted to go above our horizontal arrow line but failed to close above it. This suggests that the recent bullish move could be considered a liquidity-taking activity, and now that the price failed to close above, we may consider opening a sell position.
If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Trade closed: stop reached:
stop-loss hit during the news release due to wrong anticipation of future price movements.