AUDCAD, Daily
I last wrote on the AUDCAD “The AUDCAD also rolled over and displayed some classic bearish patterns. The Tweezer Top and Fractal high Monday and Tuesday was followed by three strong down candles (3 Black Crows) the confirmation SHORT entry was on the close of last night’s candle at 1.0180 as the key 20 Day moving average was broken. The 23.6 Fibonacci level could provide some resistance to the move down to target 1 at 1.0080 (100 pips and the 50 day moving average). Target 2 is more ambitious, beyond the lower Bollinger band and at the psychological 1.0000 level. The pair was last below the 20 day moving average in January, so this could be a significant break if it is maintained. The position is against the longer term monthly up trend. The Parabolic SAR turned negative yesterday, the RSI at 51 is neutral but falling and MACD remains negative”.
Both these targets have been achieved and the trade netted 180 pips.
The very strong reversal on Thursday (April 13) from the 200 DMA and engulfing the three previous day’s moves reversed the position and prompted a LONG position at 1.0090 today. The parabolic SAR has also reversed. The 20 and 50 DMA may prove resistance to the move back to Target 1 at 1.0180 (14 DATR and 61.8 Fibonacci retracement level). Target 2 is the next resistance higher at the recent Fractal High at 1.0265. This long position is with the longer term Monthly trend but the weekly trend remains neutral. A break of the 200 DMA at 1.000 zone would negate this position.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
[ujicountdown id=”Next Webinar” expire=”2017/04/18 12:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Stuart Cowell
Senior Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
