AUD currently falling due to faltering commodities
but CAD also isn't doing well due to poor jobs data and weak oil
. So in turn, we need to look at this currency pair from a deeper perspective as there are setups to be traded. After a strong impulse up from when Canada's economy was completely in the toilet, Australia began to follow and thats why are currently in the bearish
correctional phase. Price action has entered back into a rather slightly strong sloped descending pitchfork
which brings a lot of strong stable levels with it. Price is currently being rejected at the top of the descending pitchfork
with confluence from the 50% fib line. This is obviously a very strong level and there is a good chance bears are pressuring price right now as stops will be run if price gets over this hump. The sideways triangle seems to be the move that price will break from but more simply, i think we are in a bear flag
correction phase as price also just broke below bottom of a descending triangle
. (not graphed) Currently price is being rejected in whats becoming an even tighter range and the bottom of this current range seems to be a "mode". If i put it together, a range expansion, with a correctional pattern and bearish
range play, im looking for an ABC
correction or a strong two legged bearish
correction until the ACB
gets things in the economy under control.
Trade with Care!
Thanks for the support!