Hi Traders! AUDCAD bearish flag provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
AUDCAD D1 Chart:
On the daily chart the price is moving inside a bearish flag pattern and is respecting it so far. The price is currently nearing the bottom of this pattern, in addition to this we also have a hidden bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now start looking for more evidences of bearish pressure on lower timeframes in order to join the bears.
AUDCAD H4 Chart:
On the H4 chart we have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now start looking for bearish setups with more bearish evidences on lower timeframes in order to join the bears.
AUDCAD H1 Chart:
On the H1 chart the price created a double top with bearish divergence and then the price moved lower and broke below the last low, we may consider these as evidences of bearish pressure. Currently it looks like a pullback is happening, if the price moves lower and breaks below the bottom of the daily bearish flag pattern, we may then start looking for sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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