AUDCAD Giving The Shorts Another Look
- AUDCAD lower after hitting major resistance
- Forming a head-and-shoulders pattern on the 4-hr
- A move towards 9650 looks probable on a neckline break
Last week, it was pointed out that AUDCAD was trading at a confluence of resistance levels. After pulling off those levels, a head-and-shoulders pattern is forming on the 4-hr chart. The height of the pattern indicates a measured move of about 280 pips from the neckline, with a target below 9500, however; due to the pattern being ‘tall and narrow’ (less probable to meet measured target), I am focusing on a target equal to the first leg down from 10068 to 9786. If 9930 (morning high) turns out to be the right shoulder, the target I am looking for is 280 pips from that peak – 9650.
AUDCAD 4-hr: Dec '14 - Present
--- Written by Paul Robinson, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.