Browse Symbol Stacks: AUDCAD: $AUDCAD - Closing the 270 pips short position as... - The Market Zone

$AUDCAD - Closing the 270 pips short position as... - The Market Zone

One pattern's target could lead to the completion of the other - 500 pips potential move

$AUDCAD - Closing the 270 pips short position as this pair completed a bullish AB=CD pattern. 

We definitely can see this pair reaching 1.0 but I don’t find the idea of risking 270 pips for additional 50 so appealing. 

We have CAD core CPI coming in a few minutes and with the bullish pattern completion I will take my profits near target zone. 

When I first posted this setup to the Elite Zone members I mentioned that we have 2 harmonic trading pattern and there is a possibility that the smaller pattern’s target will lead to a rally to complete the bigger green pattern. 

1.0-0.99 is a good support zone that can create a reversal. Add the AB=CD to it and you have a buying zone if you want to take a bullish trade in $AUDCAD. 

Reversal could take time since this is a daily pattern (current pattern took about a month till reaching first target level). 

Several scenarios: 

1. Trade the AB=CD pattern with 1.01 as initial target

2. Wait for daily/weekly reversal and trade with anticipation for green patterns completion (500 pips potential move!!!)

3. If you are bearish, wait for a pullback (maybe to the 1.01 zone) and try to time your short. Smaller pattern (Butterfly) secondary target is near 0.98. Consider that the pair will have to cross 1.0 on its way!

Want more trade ideas like this? Make sure you visit WWW.THEMARKETZONE.NET and sign up for the free newsletter or the premium Elite Zone service. 

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