Long AUDCAD: Bullish Shark at .5AB

Sep 24, 2015

AUDCAD has completed a bullish shark pattern at the 50% retracement of the larger AB leg. The bullish shark reversal zone is confluent with a number of important levels. Two unhit daily pivots sit above price and may help push it upward. Since AB retraced 61.8% of XA, it is not uncommon to see BC retrace the same amount with respect to AB. For this reason, I have placed the SL outside of the .618AB area but I do not consider it part of the potential reversal zone. Targets are placed at .382 and .618 retracements of CD.

Confluence in the PRZ:
1. Bearish shark pattern completion
2. .5AB Retracement
3. 2ab=cd
4. 1.618bc projection

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