AUDCAD made a massive Bearish move on the H4 chart. The price seems to have made a breakout towards the downside. We see three consecutive good-looking Bearish H4 candles. It is the time for a consolidation and a breakout at a Horizontal Support level to take a short entry on the pair. Let us have a look at the H4 AUDCAD chart.
AUDCAD Price Action Analysis – 1st Mar 2018
Have a look at those three consecutive H4 Bearish candles. One of them made a breakout at an Up trending Trend line and kept coming down with strong selling pressure. The level of 0.99090 is the level of Support here. Most probably, the level of 0.99290 would work as a level of Resistance of the consolidation. If the level is held as the Resistance during the consolidation and makes a breakout at the level of 0.99090 by producing an H4 Bearish Engulfing Candle, then selling the pair would offer us an excellent risk and reward ratio. By looking at the chart, it seems that the price would reach the level of 0.98350 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Stop Order: 0.99090
- Stop Loss: 0.99290
- Take Profit: 0.98350
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Since it is a chart setup on the H4 chart, it might take a day to produce the H4 signal candle. I mean to say, we have to be very patient to take the entry and to take the profit out. Do not be in a rush with this setup. Be patient and it would pay you back.
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