We published an article on 2nd July projecting bullish sentiments on AUDCAD, seems that the market has already adapted to our suggested facts and figures for the market to come with bullish footprints.  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. From current market perspective, AUDCAD managed to break above our 50% fibb level as mentioned in our previous article and has taken a reversal from our upper trend line while in four hourly chart the pair is still above the ichimoku cloud with mixed sentiments. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Relative strength index in daily has taken a swift u-turn from 30 saving itself from the oversold conditions and reached towards 50 as explained previously. 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. 0.92881 should be taken as a not trade zone unless we get a retest towards our trend line followed by a bullish fractal, marking the continuation of bullish rally. According to the wave theory, this can be a wave 'b' in process under daily time frame which can be an irregular correction, a flat correction or the regular ones, this will be decided in accordance to the price actions broken and fractals formed. For now, retail traders should focus on four hourly chart and the market move to 0.92170-0.91949, an impulsive bullish reversal from the aforementioned zone can also be taken as a hawkish trend continuation while a breakout below will be monitored in daily to understand the type of correction adapted by AUDCAD. 

AUDCAD

Aug 07 2021