Short Opportunity on AUD/CAD – Supply and Demand Analysis
Technical Analysis:
Supply Zone: The current price of AUD/CAD is approaching a significant supply zone around 0.89800. This area has acted as a barrier in the past, indicating potential selling interest.
Simple Moving Averages (50 and 100 SMA): The 50 SMA is crossing below the 100 SMA, forming a bearish crossover. This could signal a potential shift in trend momentum.
Risk Management:
Entry Point: Consider entering a short position on AUD/CAD around the 0.89800 level, aligning with the identified supply zone.
Stop-Loss: Place a stop-loss order above the supply zone or a recent swing high to manage risk in case of a potential upward breakout.
Risk-Reward Ratio: Evaluate the risk-reward ratio to ensure it aligns with your trading plan. Identify a target based on a key support level or a favorable risk-reward ratio.
Fundamental Considerations:
Economic Indicators: Keep an eye on relevant economic indicators for both Australia and Canada that could impact the AUDCAD pair. Also. industrial production news release of China could affect the AUD too!
Risk Sentiment: Monitor broader market sentiment and risk trends, as they can influence currency pairs.
Supply Zone: The current price of AUD/CAD is approaching a significant supply zone around 0.89800. This area has acted as a barrier in the past, indicating potential selling interest.
Simple Moving Averages (50 and 100 SMA): The 50 SMA is crossing below the 100 SMA, forming a bearish crossover. This could signal a potential shift in trend momentum.
Risk Management:
Entry Point: Consider entering a short position on AUD/CAD around the 0.89800 level, aligning with the identified supply zone.
Stop-Loss: Place a stop-loss order above the supply zone or a recent swing high to manage risk in case of a potential upward breakout.
Risk-Reward Ratio: Evaluate the risk-reward ratio to ensure it aligns with your trading plan. Identify a target based on a key support level or a favorable risk-reward ratio.
Fundamental Considerations:
Economic Indicators: Keep an eye on relevant economic indicators for both Australia and Canada that could impact the AUDCAD pair. Also. industrial production news release of China could affect the AUD too!
Risk Sentiment: Monitor broader market sentiment and risk trends, as they can influence currency pairs.
Kommentar:
Going to reach to level
