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AUD/CAD Trading Under a Head and Shoulders

AUD/CAD has been sliding from the 1.3050, 2014-high since the end of March, and has broken below a head and shoulders pattern.

After an ABC correction, the pair sits just above the 1.00 handle, and has consolidated in the past couple of sessions.


(audcad 1h chart, 5/27)

The 1H chart shows a market that wants to bottom, but has not found the momentum. A break above 1.0060 might do the trick. It would preferable to see the 1H RSI break above 70 before we consider a possible reversal from a bottom.

Keep the bullish outlook in the 1H chart, because traders might respect the head and shoulders in the daily chart. For, example we should not expect a rally above 1.0060 to extend past 1.0116 resistance pivot, at least not in one attempt. 
 
Only a break above 1.02 should re-introduce the bullish outlook. For now, consider a very short-term bullish attempt IF price breaks 1.0060, but then also anticipate a selling on a rally opportunity when price approaches the 1.0115-1.0140 area.