AUDCAD: Flag Pattern & Trading Plan for Today!

٤ أغسطس ٢٠٢٠

AUDCAD has recently broken below a major trendline.
now the price retests it.

the last 8H candle closed forming a dodji with rejection so it looks like for now bearish pressure remains stable.

to catch a bearish continuation I would suggest being focused on a bearish flag pattern on 1H.
local horizontal resistance cluster is ahead of bulls and bearish reaction to that will be highly probable.

your trigger will be a bearish breakout of a flag (1H candle close below its support), then you can initiate short.
I would prefer retest entry but aggressive action is possible as well.

initial goal:
0.9522

safest stop is above the last flag's high.

in case of a bullish violation of the underlined yellow area, setup will be invalid.