After AUDCAD broke out of our upper trend line to the bearish channel, we added In our previous analysis published on 29th Aug that the pair has now entered the bullish trend and will be looking forward to short bearish reversal towards 0.91726 before continuing the hawkish projection. This short reversal was also based upon the relative strength index in four hourly time frame which was showing overbought conditions and after a retest of our trend line, AUDCAD went for new highs in interday time frames. The Australian Dollar versus Canadian Dollar had 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.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

AUDCAD in the bigger picture is all bullish at the moment specially after providing retail traders with a closing above exponential moving average 50 in daily, weekly and monthly pivot i.e 0.92851 and 0.92180. Monitoring the four hourly time frame in accordance to the elliot wave pattern, the pair seems to have completed its bullish 5 wave pattern and is looking for a bearish correction towards the weekly pivot again where it has managed to have created a strong support level. From the current market structure in daily and the aforementioned factors are indicating towards a short bearish reversal towards weekly pivot again, a bullish closing above 0.9250 would lead the market towards 61.80% fibb level at  0.9421. On the bearish side, if Canadian dollar managed to gain strength and dragged AUD below 0.9200 - would indicate 0.90770 as our next target. 

AUDCAD

Sep 07 2021

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