AUDCAD at a critical structural level. Will the bulls stay on track?
After last year’s steady decline, from mid-year to October, the market recovered well. From December 2018, there was a correction of this recent upward movement, but the market was still able to fend off two successful slips through the 0.937 range.
From this important support level at 0.937, the market was able to detach itself again and currently stands at the resistance level of 0.954. This area could be decisive for the next price movement.
If the market can now make a sustained jump above the 0.954 level, this could lead to further short-term recovery. The next significant structural level which may serve as resistance could be in the range of 0.967. If the market can overcome this, it will enter the sideways zone of July 2018, which has its upper limit in the 0.986 area. This area could then serve as the next resistance level.
However, if the bulls cannot break the structural level at 0.954, the first support could wait in the 0.947 range. If the market breaks through here, there is another structural level in the area of 0.937 that could serve as support.
The situation will worsen if the market breaks through here as well. There is a structural level in the zone of 0.925 that could support the market, but a fall below this level would cloud the picture, and a new valuation should be done.
AUDCAD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.
Apple Inc. is a trademark, registered in the U.S. and other countries. App Store is a service mark of Apple Inc.