On October 28, AUD/CAD broke above the downtrend trendline, suggesting the potential beginning of a stronger upside correction or even the end of the downtrend. Price has reached the 0.9433 high and corrected down towards 0.9369, where it rejected the 50 Exponential Moving Average as well as the support uptrend trendline. While the support seems to be formed it will be important to watch the 0.9369 level because as long as 4h and/or daily closing price remains above, the probability of a stronger upside correction will remain highly probable.
The AUD/CAD can be expected to rise by 150 pips towards the 0.9537 resistance area in the coming weeks. The resistance is confirmed by two Fibonacci retracement levels. First is the 23.6% Fibs applied to the previous upside corrective move up. The second is the 261.8% Fibs applied to the current correction down. And this is why it is important that 0.9369 will hold because otherwise the second Fibs will also get invalidated.
Finally, Fibonacci cycles show, that a new cycle has just started with the current 4h candle, which might be the beginning of an uptrend. Although spikes below current support are possible and for this reason, the most important is that daily close will remain above the 0.9369 support. If the price will manage to break and close below, the selling pressure can increase further and the long-term downtrend could continue.
Key support levels: 0.9369
Key resistance levels: 0.9433, 0.9537
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
The AUD/CAD can be expected to rise by 150 pips towards the 0.9537 resistance area in the coming weeks. The resistance is confirmed by two Fibonacci retracement levels. First is the 23.6% Fibs applied to the previous upside corrective move up. The second is the 261.8% Fibs applied to the current correction down. And this is why it is important that 0.9369 will hold because otherwise the second Fibs will also get invalidated.
Finally, Fibonacci cycles show, that a new cycle has just started with the current 4h candle, which might be the beginning of an uptrend. Although spikes below current support are possible and for this reason, the most important is that daily close will remain above the 0.9369 support. If the price will manage to break and close below, the selling pressure can increase further and the long-term downtrend could continue.
Key support levels: 0.9369
Key resistance levels: 0.9433, 0.9537
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.