AUDCAD could be close to rocketing up to touch 0.92400 again
AUDCAD has signaled a long opportunity that could be very rewarding, a 1:2.27 risk-reward ratio, if we put enough patience and trust our analysis:
1. Since April 2019, price has been following a downtrend, with the aussie dollar showing quite a lot of weakness, due to worsening economic conditions, and heavily affected by the US-China conflict, as China is Australia's main trading partner. The CAD has been performing quite well, sustained by a Bank of Canada not so dovish tone last week. Since touching the trendline, coinciding with our monthly resistance, price pushed with strength to the downside until reaching the psychological level around 0.89000. Since then, price has been consolidating without a clear action, not giving us any clue about where it could go next.
2. With the start of september, price started to recover. Significant price action to the upside ocurred, breaking through the 4h resistance zones identified in the chart.
3. Finally, price came back to retest our trendline + 4h resistance, managing to break both zones with a generous bullish engulfing candle. Price has continued moving a little bit more to the upside,signalling that this could be the moment where bulls could start to finally take control, as the trendline hadn't been broken since it started forming in april 2019.
This night we could see price retesting our 4h support around 0.90500, if you want to try to get a cheaper entry take this into account. Personally, I'm entering now as I believe this trade has lots of potential to start pushing with great power right now.
Sl: around 0.89500, leaving a little bit of room after the 4h support
Tp: 0.92400, the next monthly resistance.
Good luck and enjoy trading!:)
1. Since April 2019, price has been following a downtrend, with the aussie dollar showing quite a lot of weakness, due to worsening economic conditions, and heavily affected by the US-China conflict, as China is Australia's main trading partner. The CAD has been performing quite well, sustained by a Bank of Canada not so dovish tone last week. Since touching the trendline, coinciding with our monthly resistance, price pushed with strength to the downside until reaching the psychological level around 0.89000. Since then, price has been consolidating without a clear action, not giving us any clue about where it could go next.
2. With the start of september, price started to recover. Significant price action to the upside ocurred, breaking through the 4h resistance zones identified in the chart.
3. Finally, price came back to retest our trendline + 4h resistance, managing to break both zones with a generous bullish engulfing candle. Price has continued moving a little bit more to the upside,signalling that this could be the moment where bulls could start to finally take control, as the trendline hadn't been broken since it started forming in april 2019.
This night we could see price retesting our 4h support around 0.90500, if you want to try to get a cheaper entry take this into account. Personally, I'm entering now as I believe this trade has lots of potential to start pushing with great power right now.
Sl: around 0.89500, leaving a little bit of room after the 4h support
Tp: 0.92400, the next monthly resistance.
Good luck and enjoy trading!:)
Comment:
What an absolute banger! Price has been rocketing all the day, what a sniper entry. Reduce risk by moving stop loss to entry. Risk free!