Hi Traders! AUDCAD forecast update and follow up is here. On June 9th I shared this “AUDCAD Technical Analysis And Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
On the H1 chat the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening and while measuring the first wave using the Fibonacci expansion tool we have two key support zones that has formed around the 100%(0.93397) Fibonacci expansion level and the 161.8%(0.92161) Fibonacci expansion level. Until both these key support zones hold my view remains bullish here and I expect the price to move higher further. Alternatively if the price moves lower and if we get a valid breakout below the low at 0.92605 then this bullish view will be invalidated.
AUDCAD H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further until the two key support zones hold. In this pair the price which was moving lower reached the first key support zone, respected it and provided a short move to the upside delivering around 50 pips move until it was blocked by a bearish divergence. The price created this bearish divergence on both the H4 and H1 charts which is a contradictory sign for the bullish view. This is something that we need to pay attention to, when you see contradictory signs like this then it is always recommended to get out of the trade, secure your profits and avoid losses. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions accordingly.
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