Aug 15, 2011

AUDCAD H1 Bearish Bat Pattern - 15 Aug 2011

15 Aug 2011

Bearish Bat Pattern On AUDCAD Hourly Chart.

This pattern is validate by 50% retracement of XA at B point and 61.8% retracement of AB at C point.

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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