Australian Dollar versus Canadian Dollar has broken out of our upper trend line in daily as well as four hourly time frame with strong bullish momentum that can be seen building up in MACD. The 50 pips move above our upper trend line to the bearish channel landed the relative strength index in four hour time frame near overbought conditions while on the chart AUDCAD is standing a bit above our exponential moving average 200 while in daily time frame the market price is hovering below the exponential moving average 50. The relative strength index in daily is trading near 52 which shows that the hawks are taking over the steering wheel preceeded by a bearish correction for the relative strength index in four hourly chart to take an exit from the overbought conditions. The sentiments of neutrality can also be judged by the current market price standing above the ichimoku cloud in H4 while beneath the ichimoku cloud in daily. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The Australian Dollar versus Canadian Dollar has completed exact 50% of the bearish correction required in weekly time frame after a bullish rally which started in March 2020 from 0.80675 and ended at 0.99848 in Feburary 2020. The 50% fibb retracement level can become a strong bullish continuation of trend towards 0.9450 where we have our exponential moving average 50 and 200 situated in monthly. Monitoring the chart structure in weekly and monthly, keeping the EMAs and ichimoku cloud in view, we are expecting that AUDCAD will be heading towards 0.93883 and 0.9460 because most of the importance technical barriers lye in the aforementioned zone while the current position has high supply and demand that will provide hawks a chance for bullish reversal. In case the market broke out below 0.91200 then we can consider our next stop as 0.89027. 

AUDCAD

Aug 29 2021