22 Aug AUD CAD Mid Week Update; 22nd August 2012
AUD:CAD remains one of the few pairs I’m still watching. Having misplaced the stop loss on the previous swing short attempt I’m keeping an eye on it for a new short entry on confirmation of a lower high.
Most time frames offer the same story and I’ve gone for the 4 hourly here as it compresses the data quite well. If the planned swing short is to remain a valid proposal then I’d like to see price struggle in the 1.0450 region as depicted by the 50% fib retrace level in this chart, noting that additional resistance may come in the form of those converging Moving Averages:
For now there’s no guarantee the correction we’ve seen is anything more than just that so before entering any new trade here I’ll want to see signs of stretched/overbought indicators on most lower time frames and most certainly a Weekly candle close below that of last Weeks.