Hi Traders! AUDCAD forecast follow up and update is here. On November 26th I shared this “AUDCAD Short Term Sell Idea From Key Resistance Zone” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
AUDCAD H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to continue lower further until the key resistance zone holds. The price created a false break of the key resistance zone and then it moved lower as I expected providing 100+ pips move so far. The market provided us with various facts supporting this short term bearish view. On the H1 chart we had a bearish divergence between the first high at 0.95952 and the second high at 0.96169 based on the MACD indicator which we may consider as a fact provided by the market supporting the bearish view. The price then moved lower and broke below the most recent uptrend line which we may consider as another fact provided by the market supporting the bearish view. In addition to this there were no signs opposing this bearish view. Then as you can see in the screenshot below how the price moved lower as per the plan.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
You can see this move clearly on the H1 chart below
Currently on the H1 chart we have a potential bullish divergence in play, this is something that we need to pay attention to. As I always say when you see opposite evidences like this, you should consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
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So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bearish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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To your success,
Vladimir Ribakov
Certified Financial Technician
