AUD/CAD eyes 200-DMA at 0.9820,good to long dips Long

Australian Dollar/Canadian DollarFXCM

Description

⋅ Jan 11, 2017 8:38 AM

AUD/CAD extends gains after breach of resistance at 20-DMA and channel top.

The pair finds minor resistance by 23.6% Fib at 0.9783, break above to resume upside.

Technical studies are biased higher. RSI and Stochs are at neutral territory, bias higher.

MACD line has shown a bullish crossover over signal line, scope for test of next major resistance by 200-DMA at 0.9820.

Support levels - 0.9716 (5&20-DMA), 0.97, 0.9645 (Jan 6 low), 0.96

Resistance levels - 0.9783 (23.6% Fib) 0.9795 (Dec 28 high), 0.98, 0.9820 (200-DMA)

Good to go long on dips around 0.9740, SL: 0.97, TP: 0.9795/ 0.9820

Comment

⋅ Jan 12, 2017 7:20 AM

Targets hit.

200-DMA is stiff resistance.

Break above could see further upside.

Comment

⋅ Jan 13, 2017 8:27 AM

AUD/CAD has broken above 200-DMA at 0.9820, intraday bias higher.

Momentum still with the bulls. RSI in neutral territory holds above 50 levels.

We see scope for test of 50-DMA at 0.9885, weakness only on close below 200-DMA.

Comments

Trader_Dale

⋅ Jan 17, 2017 7:47 PM

Thanks for your great analysis!
Here is my view on AUD/CAD if you are interested:

Based on Market Profile (volumes) and Price Action there are two very strong resist/support zones. If you look at the Cummulative volume on the right you can see 3 main volume areas. The biggest one in the middle (around 0.9850) is POC - point of control of the year. It could be used as a magnet (place for profit target) for both of the positions.
Both the volumes around 1.003 and 0.972 made the markets move. Now I think that the market participants that created those 2 Volume clusters will still be active when the price reaches those areas again and move the price again.

There are more Market profile swing and intraday analysis at my profile page. You are very welcome there!
Dale