AUDCAD: Correction Movement or Trend Reversal?This market should be added to a watchlist. The price bounced from 0.89000 support, and we can see that this zone can be a starting point for a correction movement or a new uptrend. If the price breaks the local swing high, the downtrend line and moves above the nearest resistance level, we should think about buying with stop orders below the local swing low and the main profit target at 0.93000 resistance level.
Until the price stays below SMA200, we have to talk about the bearish trend. It means all reversals from SMA100, SMA200, and resistance levels can be used for opening sell positions. For such sell trades, the stop orders must be placed above the local swing highs. The profit target should be at 0.89000 support zone.
All trades must be used with stop-loss orders, and it's better to use trailing stops too. For getting better entry levels, use the lower timeframes.
