Trade Idea: Is The AUDCAD About To Drop Again?
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
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All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: Is The AUDCAD About To Drop Again?
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bearish
Key Levels: Broken support key level 0.9049 with next support at the previous Daily lows.
Price Action Signal: Two candle reversal reacting to the broken support of 0.9049 key level.
Chart Notes: The AUDCAD pair broke out in momentum at the support level of 0.9049 after a strong bearish impulsive move.
With a strong bearish bias that remains intact, I am watching for future bearish movement.
Potential Trade Idea:
I am considering selling this pair again now that the broken key level of 0.9049 holds as a new resistance.
With a second test of this key level, could be another push lower by the bears from this point on the chart.
This setup has free space to the previous Daily lows for a first target and room for a 1-1 risk to reward.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
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Now is your turn:
How are you planning this setup? What are you looking for to catch the next bearish move with this pair? Just leave any question or comments below.