From TradingView · · 1m 20s
AUDCAD nears reversal zone as bearish shark pattern forms
A harmonic trading pattern suggests the Australian dollar may weaken against the Canadian dollar from the 1.0250 level.
In brief
A harmonic trading pattern suggests the Australian dollar may weaken against the Canadian dollar from the 1.0250 level. Watch for AUDCAD rejection at 1.0250 where a bearish shark pattern and trend channel resistance converge, signaling potential downside. Originally reported by TradingView.
Bearish shark pattern completing
AUDCAD is approaching 1.0250 where a bearish shark harmonic pattern is forming. This technical setup suggests a potential reversal from upward movement.
The Potential Reversal Zone
The PRZ around 1.0250 is the critical area to watch. A strong rejection here could trigger a larger move downward.
“Price has made a strong move higher into this zone, so a rejection here could start a larger move to the downside.”
Trend channel adds confluence
Price has been rising inside a channel, and the upper line now aligns with the PRZ. This double resistance makes the zone even more significant.
Watching for channel breakdown
If price gets rejected at the PRZ, a break below the trend channel would confirm the trend is changing. That's the signal to watch for.
Trade targets stretch far below
Entry is planned around 1.025 with stop at 1.0500. Three profit targets sit at 0.9350, 0.9025, and 0.8450, suggesting substantial downside potential.
Key level makes or breaks setup
A strong rejection from 1.0250 supports the bearish case. But a move above 1.0500 would invalidate the entire pattern.
What matters most
Watch for AUDCAD rejection at 1.0250 where a bearish shark pattern and trend channel resistance converge, signaling potential downside.
