AUDCAD’s potential right shoulder to complete a bearish H and S pattern looks promising if the current rectangular pattern consolidation’s PoD breaks down!

To end my Finlogix analyses for this day, I am including AUDCAD in my long cross pairs list.

There are no further Canadian major impact data releases this week after Monday’s CPI figures while none as well for Australia.

Assessing AUDCAD’s high timeframe candles:

Monthly Candle: Previous close is a Green Long Upper Shadow with a Bigger Body current is a Green Body with a Longer Head Wick

Weekly Candle: Previous close is a Green Body with a Longer Head Wick current is a Red Doji

Daily Candle: Previous close is a Green Long Upper Shadow current is a Green Doji

It’s good to see that AUDCAD bulls have completely surpassed April month’s take profit wick plus broken 2023 and January 2024’s highs.

Meanwhile on the 4H view, it’s obvious that AUDCAD’s April 9 order block has been flipped into a support during its previous lower high and lower low trendline (descending channel).

This order block is the responsible catalyst that sent AUDCAD to a new higher range which is the current rectangular pattern consolidation.

This pattern is supported by the weekly red doji candlestick pattern.

Price is still hovering in bullish territory within the median point of this rectangle consolidation but price can drop anytime where the 4H SMAs specially the 200-SMA await.

Already overbought on the weekly so there’s a decent chance for a bearish H and S pattern to play out but on a short-term trading sense only.

I’m going to short the current median price with a 50-pip stop loss while targeting to take profit back to the April 9’s order block.

I’m betting for a bearish head and shoulders pattern completion only.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

AUDCAD Intraday Analysis and Trading Plan For May 22, 2024

May 22 2024

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