There is a resistance that has been in place since 2012 so it is very strong. When the price got there is fairly quickly got rejected.
On the Weekly timeframe you can see a nice rising wedge that is now about to be broken (if you look at a shorter timeframe it is broken.)
Also, it is broken on the RSI.
What to look for:
A close under the wedge on the daily...
Price has reached to it's highest level since April 2018 due to economical policies of Canada government and central bank.
Technically, reducing the price within the channel is definite. I expect to see the price on 0.98 and even 0.97 soon but not for a long time.
AUD/CAD Signal (Daily Timeframe)
A medium to high probability, entry to go LONG is forming @ 0.98993 after the market found support @ 0.97130.Only the downward break of 0.97130 would cancel this bullish scenario.
Stop loss: 0.97130
Take profit 1: 1.00092
Take profit 2: 1.01955
Take profit 3: 1.04992
December was a strong month for Aud also against its Canadian counterpart and AudCad reached a top above 0.98
Now the pair broke under trend line support and confirmed this break. Yesterday we also have a lower high and I expect a correction from this pair once 0.98 support is broken.
Sell rallies can be a good strategy
- key level;
- wait for grown;
You will learn the best place where we can trade this instrument at low risk.
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P.S. I personally...
For the past 6 months or so, AudCad traded in a range between 0.97 and 0.93 (more or less). Now the pair just made the first leg down from the top of the range and I expect this drop to continue.
Sell rallies is my strategy and 0.9520-0.9550 should provide a good sell zone.
My outlook is bearish as long as the pair is under 0.9650 on a daily close bases
Here is the Top-Down Analysis of AUDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Price tested monthly resistance and dropped for correction. It again returned backup to test monthly resistance facing rejection to the downside.
W > After bullish impulse price had dropped till demand zone of same bullish...
Here the upward sloping channel is indicative of the relative and ever increasing deterioration of the Royal Bank of Canada's balance sheet relative that of the Royal Bank of Australia's. - A significant and still increasing fiscal power versus new debt issuance capacity, advantage RBA. This unlikely to change anytime soon - i.e. for years if not more. Naturally...