Price Action: Today AUD/CAD had a confirmed clean bounce off the Fibonacci support at 0.9325. This is 427.2% Fibonacci retracement level, where Fibs was applied to the corrective wave up after price broke below the 200 Simple and Exponential Moving Average.
The most recent price action shows a steep decline produced by AUD/CAD, but at some point, it should end. Perhaps today this was the time when the price can finally correct to the upside, or maybe even initiate a long term uptrend. Nonetheless, to confirmed the long-term bullish sentiment price must break above the key resistance, over 150 pips away from the current price.
The resistance is located at 0.9536 and is confirmed by 2 Fibonacci retracement levels. One being the 61.8% Fibs applied to the September-October overall downside move. Another one is the 23.6% Fibs applied to the previously made corrective wave up. This resistance also corresponds to the downtrend trendline as well as the 200 Simple Moving Average. Based on the time when the downtrend trendline is crossing with the key resistance, AUD/CAD could be reaching the 0.9537 level in just several days, potentially sometime next week.
Regarding the downside risk, daily and/or 4-hour break and close below the low produced today will invalidate bullish forecast, in which case either the downtrend continuation or a range training can be expected.
Key support levels: 0.9325, 0.9444, 0.9536
Key resistance levels: 0.9390
Thanks for reading and we appreciate your support!
The most recent price action shows a steep decline produced by AUD/CAD, but at some point, it should end. Perhaps today this was the time when the price can finally correct to the upside, or maybe even initiate a long term uptrend. Nonetheless, to confirmed the long-term bullish sentiment price must break above the key resistance, over 150 pips away from the current price.
The resistance is located at 0.9536 and is confirmed by 2 Fibonacci retracement levels. One being the 61.8% Fibs applied to the September-October overall downside move. Another one is the 23.6% Fibs applied to the previously made corrective wave up. This resistance also corresponds to the downtrend trendline as well as the 200 Simple Moving Average. Based on the time when the downtrend trendline is crossing with the key resistance, AUD/CAD could be reaching the 0.9537 level in just several days, potentially sometime next week.
Regarding the downside risk, daily and/or 4-hour break and close below the low produced today will invalidate bullish forecast, in which case either the downtrend continuation or a range training can be expected.
Key support levels: 0.9325, 0.9444, 0.9536
Key resistance levels: 0.9390
Thanks for reading and we appreciate your support!