Conclusion for today’s AUDCAD analysis:
Price closing below ~0.92784 implies an increase in bearish strength.
The 1 hour timeframe of the AUDCAD is presented with a closer look at the most recent chart pattern development and price action.Price action from May 22, 2019 to current date is captured using a rising wedge (diagonal) chart pattern (ideally bearish).
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Besides, price closing outside of the chart pattern provides confirmation that lower prices can be expected in the AUDCAD.
The use of Fibonacci lines enables the likely area of support to be determined in order to understand the potential or tendencies for the current uptrend. The 38.2%, 50% and 61.8% Fibonacci price levels are the key levels of interest and as a last resort, 76.8% Fibonacci price level (not shown here).
Lack of support at the 61.8% price level (i.e. 0.92784) implies an increase in bearish strength in the AUDCAD and an expectation for a close below the May 22, 2019 price low of ~0.92035.
On the other hand, consolidation at any of the price levels mentioned above implies a retracement of the bullish price swing from May 2 and therefore bullish upside and resumption of uptrend. In the case of a retracement of the current uptrend, the most conservative way to buy the AUDCAD (or go long) involves buying on a breakout above ~0.93972.
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