Australian Dollar versus Canadian Dollar had finely followed the trails in accordance to our analysis published on 9th July - analyzing the markets trend under weekly time frame with targeted destination 0.90634. Observing the markets structure, AUDCAD most supposedly has completed its impulsive 5 wave bearish rally of higher degree in daily by landing itself near the monthly and weekly lows at 0.91400. This zone has a high supply and demand for liquidity to provide the pair with bullish support, reversing the market towards 0.92459 and 0.94576. Fibb retracement levels50% and 61.8%  are respectively present at the aforementioned prices along with exponential moving average 50 and 200 in daily which would become a hurdle in AUDCAD way to further gains on a temporary note. In weekly chart we have observed that the pair has also completed a higher degree of bearish impulsive correction and would take a bullish reversal towards 0.94576 before giving a more vivid directions.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Relative strength index in daily has taken a swift u-turn from 30 saving itself from the oversold conditions while MACD is still showing some signs of minor bearish momentum. In four hourly chart AUDCAD did dive into oversold conditions and had to readjust its levels with some bullish sentiments because the 5 wave bearish structure of a smaller degree has also reached its destination and the pair calls for a bullish corrective formation. A breakout above our bearish channel i.e upper trend line at 0.9280 and 0.9300 would be taken as fractal confirmation for AUDCAD to reach up to 61.8%fibb level i.e 0.9460. The exponential moving averages 50 and 200 - present at the aforementioned zone should be taken as an exit from the pair because the EMA50 and 200 might become point of bearish reversal again to follow the larger trend. This analysis would be valid until our targeted destination is reached, further updates will be provided as we get a clear structure. 

AUDCAD D1

Aug 02 2021

Stop Loss -0.56%

Holding time 7d7hr

0.91850

Entry price

0.91340

Stop loss price