Lingrid | AUDCAD divergence at RESISTANCE zone. Short

6 Jun

The price perfectly fulfilled my last idea. It went up and hit the target. AUDCAD has recently tested the resistacne level and bounced back, indicating a strong defense of this key area. Notably, the price has also rejected the zone by absorbing liquidity above the previous higher high, suggesting a potential reversal. Furthermore, the daily chart is displaying a divergence at resistance, hinting that we might see a correction in the coming days. On the 4H chart, a long-tailed candlestick pattern emerged, indicating that bulls were heavily sold off, leaving us with a clear indication of market weakness at resistance. Given these factors, I expect that the price will break through the upward trendline and retest the support level, potentially leading to a reversal or consolidation. My target is support level at 0.90800

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻