AUDCAD - Approaching Resistance - Short-term reversal?
The combined stellar Canada jobs report, the softer US employment outcome but more significantly the rebound, or at least steadying, in oil prices after OPEC agreed on a 1.2 mln barrel per day output cut, have fostered a corrected USDCAD. Another interesting pair is AUDCAD, which failed to form a bearish rounding top in the daily timeframe, as it rebounded yesterday from a 0.9565 low. In the daily timeframe, the 20-day SMA is looking ready to confirm a crossing above 200-day SMA, something that if confirmed, suggests the increase of the bullish momentum.
As the pair failed to reach the 18-day Support level, at 0.9550, along with the break above the 20-day SMA at 0.9630, suggests the retest of 50% and 61.8% Fib. level, with immediate Support set at today's low 0.9625. Further gains could drive the market to November's peak.
Oppositely, in the near term, a decline of the 0.9660-0.9670 area could cause indecision in this resistance area and we might see the market moving away towards its immediate Support at 0.9612 (23.6% Fib. level). Further losses could lead towards yesterday's bottom and strong Support area, at 0.9550-0.9565.
However, the pair remains overall in a bullish outlook, therefore the continuation of the upside movement is likely to continue with some small corrections to the downside. Only a strong break of 0.9550 would alert the push of the price to 0.9470.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
As the pair failed to reach the 18-day Support level, at 0.9550, along with the break above the 20-day SMA at 0.9630, suggests the retest of 50% and 61.8% Fib. level, with immediate Support set at today's low 0.9625. Further gains could drive the market to November's peak.
Oppositely, in the near term, a decline of the 0.9660-0.9670 area could cause indecision in this resistance area and we might see the market moving away towards its immediate Support at 0.9612 (23.6% Fib. level). Further losses could lead towards yesterday's bottom and strong Support area, at 0.9550-0.9565.
However, the pair remains overall in a bullish outlook, therefore the continuation of the upside movement is likely to continue with some small corrections to the downside. Only a strong break of 0.9550 would alert the push of the price to 0.9470.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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