AUD CAD Trade continuation

2019-10-31 06:10:03

Price has made a strong Bullish rally and broken through Triangle Wedge pattern and has now stalled at the 78.6 retracement from the last major swing.

I expect bearish retracement from the price.

I expect a fall to either 61.8 or 50 retracement line from the last main swing. Each of these lines represent an area of high support / resistance from structure.

From there, I expect price will return to a Bullish state.

From the 4 Hour chart, price is:
Heavily overbought from RSI and Stochastics.
Apparent bearish spinning top forming.

From the 1 Hour chart, price is
Showing a spinning top
Stochastics is overbought.
RSI is divergent.

I have included where I would like to enter a trade which is just below the spinning top / indecision candle sitting at the 78.6 Line.
This would give a risk reward of;
1:3.5 to the 61.8
1:5.9 to the 50.0