Hi Traders! Today’s post is about AUDCAD short term 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 supports my view on the current trading timeframe and the higher timeframe. We will start our analysis from the highest timeframe now which will be the daily chart here.
AUDCAD D1(Daily) Chart Analysis – Strong Resistance Zone, Lower Lows
On the daily chart we had a strong support level and the price which was moving lower has broken below this level and currently it acts as a resistance zone for us. Also the price which was moving lower has created lower lows between the first low which has formed at 0.86393 and the second low that has formed at 0.80683 based on the MACD histogram and moving averages indicator which we may consider as an evidence of bearish pressure. Currently it looks like the price is retesting this resistance zone and in addition to this we don’t have any opposite evidences at the moment. We may now move down to lower timeframes and see if we have evidences supporting this bearish view.
AUDCAD H1 (1 Hour) Chart Analysis – Triangle Pattern, Volumes Indicator, Sell Zone
Looking at the H1 chart we can see that currently the price is moving inside a triangle pattern. The price which is respecting this triangle pattern so far has currently reached the top of this pattern. In addition to this the volumes are dropping based on the Volumes indicator which we may consider as an evidence of bearish pressure. We also have a sell zone that has formed based on the top of the triangle pattern and the daily resistance zone, so everything looks good here for the bears and until this sell zone holds my short term view remains bearish here.
Technical Analysis & Forecast Summary
AUDCAD D1(Daily) Chart Analysis
- Strong Resistance Zone, Lower Lows
AUDCAD H1 (1 Hour) Chart Analysis
- Triangle Pattern, Volumes Indicator, Sell Zone
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