AUDCAD Seeing one of 2 outcomes in coming 2 weeks
While I personally am mid term bullish on the Aussie - the only thing holding it up is very strong technical structures. If there are any bulls left in the market, it will be right here and now where they will have to defend it.
Any close on the daily past the trendline will mean a quick fall as it will also be breaking:
Daily 200 EMA
Daily & 4h Fib levels
historical structural supports
Sentiment and fundamentals are currently a massive drag on the Aussie which does not bode well for pure technical traders - and perhaps in this case for AUDCAD, the harmonic pattern crowd.
Expect a gap down Monday as day traders and 'institutionals' close off their positions end of day thereby chewing up bid side depth; along with more Chinese retaliatory plans come to light over the weekend.
May see a brief uptick to 0.999xx area before predatory algo's kick in to start knocking off retail and smaller to mid tier 2's & 3's caught on the wrong side of this pair.
Too much downside risk to justify any longs in IMHO - better upside reward in AUDNZD for those with appetite for Aussie long positions.
Any close on the daily past the trendline will mean a quick fall as it will also be breaking:
Daily 200 EMA
Daily & 4h Fib levels
historical structural supports
Sentiment and fundamentals are currently a massive drag on the Aussie which does not bode well for pure technical traders - and perhaps in this case for AUDCAD, the harmonic pattern crowd.
Expect a gap down Monday as day traders and 'institutionals' close off their positions end of day thereby chewing up bid side depth; along with more Chinese retaliatory plans come to light over the weekend.
May see a brief uptick to 0.999xx area before predatory algo's kick in to start knocking off retail and smaller to mid tier 2's & 3's caught on the wrong side of this pair.
Too much downside risk to justify any longs in IMHO - better upside reward in AUDNZD for those with appetite for Aussie long positions.
Comment:
Heading for 0.992 - would be good entry for shorts to ride this down
