The Australian Dollar/Canadian Dollar (AUD/CAD) pair has just broken out of a well-defined consolidation range that held for several days. After a period of sideways movement between approximately 0.8890 and 0.8970, price action has finally shown bullish momentum with a clean breakout above resistance.
This breakout presents a potential buying opportunity, supported by strong bullish structure and momentum. The breakout candle has closed decisively above the range, signaling a possible continuation to the upside.
Trade Plan:
Entry: Around 0.8970 (post-breakout confirmation)
Stop Loss: Below the consolidation range near 0.8890
Target: 0.9130 (based on measured move and previous resistance)
Technical Insight:
Breakout from consolidation indicates shift in market sentiment
Clean bullish structure with higher lows forming prior to breakout
Potential for continuation pattern toward 0.9130 zone, aligning with technical projections
Risk Management Note: Always manage risk according to your trading plan. This setup presents a favorable risk-to-reward ratio of approximately 1:2, but market conditions can change rapidly.
If this bullish momentum holds, we could see a swift move toward the target zone.
This breakout presents a potential buying opportunity, supported by strong bullish structure and momentum. The breakout candle has closed decisively above the range, signaling a possible continuation to the upside.
Trade Plan:
Entry: Around 0.8970 (post-breakout confirmation)
Stop Loss: Below the consolidation range near 0.8890
Target: 0.9130 (based on measured move and previous resistance)
Technical Insight:
Breakout from consolidation indicates shift in market sentiment
Clean bullish structure with higher lows forming prior to breakout
Potential for continuation pattern toward 0.9130 zone, aligning with technical projections
Risk Management Note: Always manage risk according to your trading plan. This setup presents a favorable risk-to-reward ratio of approximately 1:2, but market conditions can change rapidly.
If this bullish momentum holds, we could see a swift move toward the target zone.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.