As a result of growth since mid-April, AUDCAD reached a very important resistance zone at 1.0340, where a strong supply response occurred today. It is worth noting that this is already the third (and if we look at the weekly chart it is even 4th) test of this level and if once again the market rejects this resistance, we could expect declines for which the nearest significant support (from the perspective of daily interval) turns out to be 0.9950.

Looking at H1 chart, we will see that market is testing local support zone, below which is 38.2% of the Fibonacci correction. Rejection of this level could cause a rebound, although given the dynamics of today’s downturns, it seems more probable to overcome the present level or that any increase will only be a short-term correction before further declines.

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