Trade of the Day: AUD/CAD

By: Dima Chernovolov

AUD/CAD recently broke the key support level 0,8992, which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this key level at the 4-bar level – which is the result of the 4 previous price reversals from this price level. AUD/CAD is expected to fall toward the forecast price 0.8923.

As can be seen from the daily AUD/CAD chart below – breakout of this key support level coincided with the breakout of the support area lying between the key support level 0.8980 (which has been reversing the price from the middle of November) and the 50% Fibonacci correction of the previous upward impulse from the start of October. This price area is acting as the strong resistance area after it was broken. The proximity of this resistance area increases the probability AUD/CAD will continue to fall toward the forecast price 0.8923.