AUDCAD

audcad

AUDCAD Minor Forex Pair

The AUDCAD Forex pair has recently shown a strong downtrend, as shown in the 1-day chart above. The price was moving downwards within a channel before finding support and breaking out of the channel with significant momentum. AUDCAD then experienced a pullback that rejected the 0.618 Fibonacci level, followed by the formation of a daily bullish engulfing candle. I have now analyzed this pair further on lower time frames to identify a potential trading setup.

The 4-Hour Break of Structure 

After scaling down the 4-hour chart, I can now see a bullish impulse that was formed yesterday and it broke the lower high structure. At the start of the London session today, the price came back to retest with a nice, clean ABC correction.

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The Nice, Clean ABC Correction

We are now observing more price action on the 1-hour chart for AUDCAD. The downward movement observed on the 4-hour chart consists of three waves. During the third wave, we experienced a break that resulted in a bullish impulse

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Although the bullish impulse was not particularly strong, it was sufficient, and the ABC correction was excellent. I have decided to enter a BUY trade here, with a risk-to-reward ratio of 1:2.

The Result 

My AUDCAD trade ultimately resulted in a loss. The trade was going according to plan on Friday, benefiting from the volume at the London open, but it stalled before the NFP news was released. When the news came out, it did not align with our expectations, as the jobs data was favorable for the US Dollar. This positive data for the US Dollar negatively impacted the Canadian Dollar, causing the price to drop and hit my stop loss.

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Now, on to the next...


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