Hi Traders! Today’s post is about AUDCAD forecast and technical analysis. As I do with every technical analysis post, multi-time frame analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! We will start our analysis from the highest timeframe now which will be the weekly chart here.
AUDCAD W1(Weekly) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Stochastic Oscillator
On the weekly chart, the price which is moving higher has reached a strong resistance zone. Also in addition to this, we have a bearish divergence that has formed between the first high that has formed on 2nd August 2020 and the second high that has formed on 21st February 2021 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this based on the Stochastic Oscillator, we could see that the price has reached its extreme, we may consider this as another evidence of bearish pressure. So everything looks good here for the bears, we may now move to lower timeframes and see if we have evidences supporting this bearish view.
AUDCAD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence, Stochastic Oscillator
On the daily chart, we have a key resistance zone that has formed by the 161.8% (1.00608) Fibonacci expansion level of the first wave and the 61.8%(0.99945) Fibonacci expansion level of the second wave. The price which is moving higher has currently reached this key resistance zone. In addition to this, we have a bearish divergence that has formed between the first high that has formed on 7th January 2021 and the second high that has formed on 22nd February 2021 based on the MACD indicator which we may consider as evidence of bearish pressure. Also based on the Stochastic Oscillator, we could see that the price has reached its extreme here as well, we may consider this as yet another evidence of bearish pressure. Until the key resistance zone holds my view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
AUDCAD W1(Weekly) Chart Analysis
- Strong Resistance Zone, Bearish Divergence, Stochastic Oscillator
AUDCAD D1(Daily) Chart Analysis
- Key Resistance Zone, Bearish Divergence, Stochastic Oscillator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
