AUD/CAD Approaching Key .9460 Resistance

Last updated 2/17/2010 11:47 AM EST (GMT -5) 1 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

A potential AUD/CAD selling opportunity may present itself this week based on an emerging 8hr bearish Gartley pattern along defined by the following fib convergence....

·  61.8% of XA

·  127.2% of BC

·  AB=CD

Watch out for any gaps and/or wide-ranging candles (2-3x's average) prior to the projected entry as these are signs that a continuation move may be in progress, which may invalidate this particular entry, which in this case may be pushed up to secondary pattern completion just below 78.6% of XA.  The stop-loss of .9554 placed just above secondary projected pattern completion takes this into account.  A move above this level without a correction down to the break-even point of .9391 would result in pattern failure thus increasing the odds of a potentially strong bullish continuation up to 127.2% of XA near .9700.

The initial profit target of .9321 represents a 78.6% retracement/correction of the projected CD leg as well as 61.8% of AD. An extended target of .9088 may come into play depending on price action prior to reaching the initial .9321 target.

Potential strategy: Sell if prices rally to.9454 with stop-loss of .9554 targeting .9321 (stop to break-even at .9391).

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Comments (1)

rstojsic

February 26, 2010 at 11:27 AM ET

this trade has been triggered as, but long warning sign present suggesting room up to 78.6% XA resistance near .9525

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