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Market View

AUDCAD is heading to a major resistance zone

Friday, November 9, 2018 1:30 PM GMT

The Australian interest rate remained at the record low of 1.5%, as widely expected, extending its record period of policy inaction beyond two years. On the other side, Canadian Ivey Purchasing Managers Index s.a. (Actual: 61.8) and Housing Starts s.a. (Actual: 206K) increased more than the expectations.

From a purely technical weekly perspective, AUDCAD is currently approaching the resistance zone between the resistance (R1), which is the 2017’s low price, and Fibonacci 61.8% retracement level. Additionally, RSI is oversold.


Heading to H4 timeframe, the pair is consolidating below the resistance zone. Although, Stochastics holds above 50 level and maybe continues towards trendline (T2), which probably means that AUDCAD will continue to the retracement area. Then, the market may offer a bearish opportunity towards the trendline (T1).


On the other hand, if price breaks out above the 61.28% Fibonacci level, then the setup is busted.

Today’s agenda includes CFTC AUD NC net positions (Previous: $-70.4K), however it is not expected high volatility.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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