Monday, August 15, 2011
15 Aug 2011
This pattern is validate by 50% retracement of XA at B point and 61.8% retracement of AB at C point.
PRZ :
0.786XA @1.0403.
2.24BC @1.0392.
1.27AB=CD @1.0392.
The convergence of all important fibonacci at 1.0390-1.0400 should provide a strong resistance for AUDCAD from predominat uptrend.
If we are looking on daily chart for this pair, we could summerize a strong uptrend was started on May 2010 without hesitating of a reversal sign. However this pair formed a double top at 1.0550. I will be looking to short on this pair once price action is testing the PRZ. One thing to remember as the B point is below 50% retracement of XA, this pattern could formed to Crab pattern if PRZ unable to hold the strong predominant uptrend.
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