Australian Dollar / Canadian Dollar
Daily Bars
Prepared by Jamie Saettele, CMT
“The AUDCAD is setup for a sharp reversal. The rally from 10277 is at risk of being fully retraced and quickly as the advance from the level has unfolded as an ending diagonal (today’s poke above the upper diagonal line constitutes a throwover). The advance from the 5/23 low divides into Fibonacci proportion (wave c = 61.8% of a) and the 2/22 low (former support) reinforces resistance just above today’s high.” The 2/22 low at 10597 was reached to the pip last night and a daily key reversal is in the works. I am bearish against 10597. 10550/60 is short term resistance.
Daily Bars
Prepared by Jamie Saettele, CMT
A long opportunity was identified last week as I wrote that “the impulsive (5 waves) nature of the advance from 9410 suggests that another bull leg is around the corner. The decline from 9732 has unfolded in 3 waves with waves a and c nearly equal. Additional support is 9465. Exceeding 9560 would increase confidence that a low is in place. 9814/32 is an objective.” A larger advance towards 10162, in order to correct the decline from 11142, is favored as long as price is above 9492. Respect near term downside potential into 9635 as the mentioned 9814/32 resistance looms.
240 Minute Bars
Prepared by Jamie Saettele, CMT
Evidence continues to mount that the EURAUD has found some sort of bottom. Friday’s reversal is at the ‘right time’ (early in the month) and near term action since the low, a sharp impulsive rally and 3 wave setback from 11775, is consistent with additional upside. Focus is on 11855 (former high and 100% extension) as long as price is above 11695.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
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