Australian Dollar versus Canadian Dollar have managed to consolidate above our major support line as expected in our previously published analysis on 28th Sept while the bearish momentum is just not enough to break below 38.2% fibo retracement level i.e 0.9080. The pair has found support at daily support one 0.91458 and is currently struggling to break above the weekly and daily pivot 0.91793. On the other end, Senkou Span A and B - in a cross over, along with exponential moving averages 50 and 200 in the daily time frame are acting as a strong resistance, preventing Australian Dollar to go for any gains against the Canadian Dollar. AUDCAD more or less - is building a 'W' pattern and the current market structure might be forming strong bullish momentum to break above 50% fibo level in order to enter the hawkish trend, but for that confirmation, we would be keeping a keen eye on the elliot wave count. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the bullish side as we mentioned in our market forecast above, the W shaped wedge forming is pointing towards AUDCAD preparing for a hawkish rally which might lead to 61.8% fibo retracement level 0.9421 - incase it managed to first break above 0.9250 i.e 50% fibo level. On the bearish side we can expect that AUDCAD taking a bullish temporary reversal towards exponential moving averages 50 and 200 in daily, if preceeded by an impulsive bearish closing - would lead the market towards 23.6% fibo retracement level. But for the aforementioned bearish rally to take place, we would require a confirmation below our major support zone 38.2% fibo level. For the hawkish continuation of trend, a breakout above 50% and 61.8% in an impulsive manner - would get us the confirmation. 

AUDCAD

Oct 05 2021