So a new week is about to begin and as always i have been scanning through to see what potential opportunities may present themselves. The pair that has caught my attention the most is AUD/CAD as it has moved in to a level that looks perfect for a short.
As you can see this pair has made 3 attempts to crack the 1.0335 level during its uptrend but simply couldn’t find enough buying pressure to break through. As a results price has now fallen and broken the ascending trendline before retracing back to retest. Along with this we have the added confluence of the 0.9955 resistance level and the 50EMA which make this even more of an appealing level to watch.
Now as it stands this looks a very hot short but of course we still need to be patient and wait for our entry signals to heighten the winning probability of this trade and also allow us to get in at a great risk/reward ratio. For me now i will be watching the lower timeframes to get the refined entry that i want and will only enter if all the boxes are ticked. Remember that we want to add as many layers of confluence as possibly to keep our edge in the market.
Make sure this one is on your watch list!