AUDCAD – SHORT – 30th July 2017

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Taking our analysis up a level to the weekly chart we can see two very clear pin bar rejections of the 50EMA and a key level at 0.9959. This gives us a longer term bias to the short side subject to being able to time our entry on the lower time frames.

On the daily chart we can see a bearish outside bar also rejecting the 50EMA and the same 0.9959 level. Our bearish bias remains if we can see a retrace of the outside bar.

 

 

 

 

 

 

 

 

 

 

 

 

On the hourly chart MACD divergence has formed across recent highs and price has now broken down beneath the 50EMA. The pivot aligns to the key 0.9959 level and also aligns to a H1 support level.

This represents a grade A trade with multiple confluence factors. We will enter a short trade on a retrace to and rejection of the daily pivot. Our stop will be placed above R1 and due the weekly bias we’ll be looking to run the position down to the prior swing low around 0.9760