AUDCAD has been moving north for a long time. As a result of numerous resistance tests at the 1.0045 level, which resulted in supply response a formation of ascending triangle was formed, which we broke down today. If in near future the breakout is not negated we may expect continuation of downward trend, perhaps even to level 0.9755.
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Looking on H1 chart, we note that as a result of yesterday’s downtrend pair not only hit the bottom of the triangle formation but also reached vicinity of another support, where demand reaction occurred in the morning. Caused by the rejection of this level, and lasting for 4 hours growth reached vicinity of local resistance zone, where strong supply reaction has just occurred. If, therefore market permanently rejects this resistance and defeats today’s minima, we expect pair to continue declines.
