AUDCAD: Bearish Reversal Coming?!The *AUDCAD* currency pair seems to have formed a *dynamic head and shoulders pattern* on the *4-hour (4H) time frame*. Let's break down the analysis:
1. *Pattern Description:*
- The head and shoulders pattern consists of three main components: a left shoulder, a head, and a right shoulder.
- In this case, it's described as "huge," which suggests that the pattern is particularly significant.
2. *Dynamic Neckline Break:*
- The neckline of the pattern is a trendline connecting the lows of the left shoulder, head, and right shoulder.
- A "dynamic" neckline means that it's not a horizontal line but rather follows the slope of the price action.
- On Friday, the neckline was broken, indicating a potential reversal.
3. *Bearish Expectations:*
- The successful close of a 4H candle below the dynamic neckline suggests bearish momentum.
- Traders often look for confirmation by waiting for a retest of the broken neckline as resistance.
- If the price continues to decline, the next significant support level is around *0.9000*.
Remember that trading involves risks, and it's essential to consider other factors (such as overall market conditions, economic news, and risk management) before making any trading decisions. Always use proper risk management techniques and consider seeking professional advice or mentorship if you're new to trading. 😊📉💡
If you have any more questions or need further analysis, feel free to ask! 🌟
