AUDCAD – a rather capricious pair, both currencies belong to the so-called commodity dependent – strongly dependent on the prices of raw materials – the Canadian dollar reacts to oil prices, and the Australian dollar, due to the structure of exports, mainly to China, reacts strongly to the prices of such raw materials like gold, iron, aluminium and coal.
Looking at the technical side, i.e. at the chart, it fits quite well into the Over Balance (OB) strategy. The green rectangles include two, almost identical corrections in the downward trend. In addition, on the Daily MACD chart, a maximum has been created and a divergence has arisen.
Going to the H4 chart below, considering the downward scenario, we can determine the closest supply target, which is 0.9575 distant by about 100p.
