Canadian dollar has taken a tremendous advantage of Australian dollars weakness due to increasing delta variant cases and has broken below our previous major support - now turned resistance 0.91464. According to our previous analysis we werent expecting the market to retrace back from this high supply and demand zone for liquidity to provide the pair with bullish support, reversing the market towards 0.92459 and 0.94576. Unfortunately our fibb retracement levels 50% and 61.8% , respectively present at the aforementioned prices along with exponential moving average 50 and 200 in daily - became a hurdle in AUDCAD way to further gains and created a lower low in daily time frame at 0.91043. AUDCAD is currently standing just below the support turned resistance while on weekly chart the pair is in a deeper -and greater bearish corrective structure.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

If the market finds strong support at the current low in daily i.e 0.91125 and provides us with a breakout above 0.92241 then there might be chances of going higher towards 0.93278. Nearby resistances are 0.9152 and 0.92000 - which the pair needs to provide a breakout above for confirmation of change in trend or a bearish reversal from the aforementioned prices can lead AUDCAD towards 0.9000. There are high chances of bullish rally from 0.91125 and if broken then from 0.9000 but the fibb retracement levels from weekly highs to weekly lows suggest that there is alot more space for AUD to go bearish and revert all the gains made since April 2020. We will be monitoring price actions and breakouts with legitamte fractals to determine the upcoming big moves in accordance to the aforementioned levels and factors with minimum risk and high reward ratio. Also the bearish trend channel is valid until Australian Dollar has gained strength enough to take an exit from the ichimoku cloud and dives back just as a retest to our upper trend line of bearish channel i.e 0.92517

AUDCAD

Aug 25 2021

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