Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The rising channel seen in the 4H chart of the AUD/CAD shows a break below a rising channel. This break is a sharp decline that also brought the RSI below 30, a bearish breakout signal.
- A return to the start of the channel at 0.9750 can be anticipated. In the very short-term however, the RSI shows we might be oversold, so we might find some support near the 0.99 area. A subsequent rally that fails to break above 1.0 parity confirms that the bearish attempt then would target 1.5750.
- We see in the daily chart that this is an important area indeed. It is the base of a developing channel.
- If the market breaks back above parity, it is likely to test 1.01, and possibly break above to 1.02 to test channel resistance. So watch out for the pullback.
- If the decline does materialize, watch 0.9750, as a break below that has a channel break out projection to 0.93 area.
- One good clue in the daily for this bearish outlook is that the RSI is now remaining below 60, showing that bullish momentum has been waning during this sideways action, suggestive of a reversal. We will see at 0.9750.
Does the Failure to Reach 1.02 channel resistance suggest bearish breakout, or is there another rally to test 1.02? We would love to hear what you think.
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