Watchful eye on AUD/CAD

Good Morning Traders

Before I even begin my contributions to this website I would like to thank Javid and Anne for allowing me this wonderful opportunity. Having been an avid reader of the blogs for the past year, it’s still hard to believe I’m actually here! Trading and most definitely becoming a contributor to this site was something I never would have dreamed possible. But it is.. with sheer determination, commitment and discipline anything is.

I would also like to say a very special thanks to Ash & Bijal who have helped and mentored me so much on this incredible journey. You’re both a true inspiration and I only hope to follow in your footsteps and give something back by helping readers through the blogs.

And not to forget my fellow bloggers, thank you for your commitment with writing these blogs with such commitment and enthusiasm. They’ve really helped me to advance my trading knowledge and understanding of the markets.

Today I’m looking at AUD/CAD. Let’s take a look at the weekly timeframe to start. You can clearly see price is currently in an uptrend. Price crossed above the 200 MA and then retested it as support, potentially giving us the springboard it needs to continue on upwards with the trend. You can see the bullish flag formation, which has also tagged a fib breather level. We’re now approaching a S/R zone and a RN so it will be interesting to see how buyers and sellers react. Note the bullish engulfing candle at the Value Index support suggesting a strong signal for a continuation.

Now let’s take a closer look at the daily chart. You can see price broke the squeeze formation upwards, favouring our edge to the upside. Price found support at the RN and we have a spinning top as our extreme candle at TL support, which is also nearing the Value Index. This is definitely one to keep on the watchlist – will it break through the resistance looming above or will it have a moment of indecision or even reverse? We can see with yesterdays candle there was some indecision in the market, so we may see price lose a little steam.

As we know, the market will do whatever it will do – so we simply need to be patient and neutral and wait for the market to make its move. Think about your edge, choose the appropriate strategy from your dynamic trader toolkit and then most importantly take action. As always please carry out your own analysis.

Here’s to great trading!