I haven't been trading AUDCAD for a while but the structure looks just too good to pass on. I expect another leg lower for a wave C. Nevertheless we have to be careful because all CAD pairs are in major consolidations and we should not enter too soon because so far all lookalike bearish impulses reversed and made a new high within the correction. Therefore the safest trade will be; let this bearish impulse of today settle and consolidate and sell the continuation. This way we won't get whipsawed by a potential reversal and new high within the consolidation.
The short trade I called yesterday is working out great. However this doesn't look good to me yet for a bearish break out of the channel. Manage the short closely next week and don't be surprised if we see another leg higher. I target the bearish continuation but looking at USDCAD and Oil suggests that we might very well need some more time before this pair will be ready to break lower. Nevertheless the short was succesfull and now we can relax and see whether there is more on the table or whether price needs a bit more time.
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'Manage the short closely next week and don't be surprised if we see another leg higher'. This was what I said last week due to the outlook for other CAD pairs as well as Oil. Nevertheless the short was good and I like this move higher even more. 50% of my previous trade hit target, 50% got stopped out at break even. But the 50% that hit my intra day target can be considered a bonus because the move lower will come and next time we will short it again.
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Trillionschifer
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I was in this one... took a chance on your analysis, but tweaked it a bit for my own safety. (Risk management and all that.) Still it panned out. Thanks for the heads up... I haven't even looked at this pair for a long while.
sketchmaster
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Thanks, Tim. This should be a 5-wave structure, right, so the consolidation will be...quite swift..?
(or it already happend just after the break...)
TimStuyts
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For wave C I'm looking for 5 waves yes, however as long as we are in this channel we can see a more complex correction for wave B.
sketchmaster
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Great, thanks a lot. Have nice weekend.
TimStuyts
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Thank you, you too! has been a great trading week!