AUDCAD

14 thg 11, 2020

So we have created a double bottom, a lot easier to see on the Daily Chart. we have broke the pattern and should see a retracement down to the broken neckline. To confirm the neckline i placed the fib retracement tool to the swing low to the swing high and the 61.8% level is in line with the broken neckline. We are also creating a rising wedge which can be seen in up trends and normally seen to break to the down side. we have hit an important resistance area and if you go down to the 15min chart you will see a double top forming with divergence, but this is on a lower time frame so could just be a move down to the patterns trendline. We have divergence on the RSI which is confirming the momentum of the trend is slowing, also our Stochastics (10-6-6) is showning divergence, overbought, a crossover and now we are back in the zone.

In summary; i will sell on the short term down to the 61.8% level and then look to execute this currency pair into a long position.