AUDCAD Trade Alert - Bearish Setup at Key Support Breakout.Bearish Trendline at 4-Hour Time Frame:
AUDCAD has been following a bearish trendline in the 4-hour time frame, indicating a prevailing downward momentum in the market.
Observation of Dow Theory:
Additionally, the market has been adhering to the principles of Dow Theory, reinforcing the bearish sentiment.
Retracement and Rejection:
A retracement up to the 0.5 Fibonacci level was observed, followed by a clear downward rejection, suggesting strong selling pressure at higher levels.
Current Position at Key Support Zone:
Presently, the price is hovering around a critical support zone, signifying a pivotal area where significant price action is anticipated.
Trade Setup:
We anticipate a continuation of the bearish move if the price breaks below this key support level.
Entry Strategy:
A prudent entry point for short positions is identified near 0.88863, aligning with the bearish outlook.
Risk Management:
To mitigate potential losses, a Stop Loss is recommended near 0.89279, providing a buffer against adverse price movements.
Profit Targets:
Our profit-taking strategy involves targeting TP-1 at 0.8450 and TP-2 at 0.88030, reflecting our expectation of downward price movement.
Conclusion:
In conclusion, based on the technical analysis of AUDCAD, we anticipate further downside potential, with a well-defined entry point, risk management, and profit-taking levels in place to optimize trading outcomes.
