AUDCAD - Trade the breakout !
The past week has been rather a boring pair to look at for breakout traders.
The pair has been typically on ranging for the past one week (29 sept till 6 oct) until today where it finally break on the lower ranging 0.9500.
In simple words, we trade the breakout and anticipating the pair will go down. Short position bias.
Conservatively, chasing over the market is not the best option. Retracement likely after impulsive movement of the price.
Waiting for a retest either on the EMA 20 or can be a bearish price action pattern eg such as a strong bearish engulfing candle after retracement will be a better entry.
Possible retest area expected to be at 0.9500 where it is previous support turns resistance.
2 Stop loss level as illustrated. Once the stop loss is triggered - it invalidates the ranging market condition and the trade setup might failed.
The pair has been typically on ranging for the past one week (29 sept till 6 oct) until today where it finally break on the lower ranging 0.9500.
In simple words, we trade the breakout and anticipating the pair will go down. Short position bias.
Conservatively, chasing over the market is not the best option. Retracement likely after impulsive movement of the price.
Waiting for a retest either on the EMA 20 or can be a bearish price action pattern eg such as a strong bearish engulfing candle after retracement will be a better entry.
Possible retest area expected to be at 0.9500 where it is previous support turns resistance.
2 Stop loss level as illustrated. Once the stop loss is triggered - it invalidates the ranging market condition and the trade setup might failed.
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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.
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.