From the daily perspective, AU created an overextended W formation, and expect the price to retest the neckline of the W formation, a.k.a previous resistance turn to support, and the AC already reached the major resistance, expect a further downside on the next week.
From the COT perspective, hedge funds are actually bearish bias on the AUD and CAD, although the AUD seems stronger than CAD, I believe the price will continue to push toward the neckline of the W before the AC starts to push to the upside since CAD is weaker than AUD.
I will be monitoring the 4h price action inside the daily resistance if there has show any confirmation for me then I will take a short position on AC with a good risk-reward because overall the market environment is still bullish.
Remember, always react to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge funds are actually bearish bias on the AUD and CAD, although the AUD seems stronger than CAD, I believe the price will continue to push toward the neckline of the W before the AC starts to push to the upside since CAD is weaker than AUD.
I will be monitoring the 4h price action inside the daily resistance if there has show any confirmation for me then I will take a short position on AC with a good risk-reward because overall the market environment is still bullish.
Remember, always react to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.