AUDCAD – after setting the maximum of the year at 0.9613 on 17.04, the pair moves in a downward trend. Yesterday’s daily candle covered the Tuesday candle forming the Bullish Engulfing (Outside Bar) formation. During today’s quotations, an upward divergence occurred in the daily chart of the MACD oscillator.

AUDCAD Daily – bullish engulfing and divergence

When you look at chart H4, there is also an upward divergence that began the day before. Inside or Outside Bar formations, if they are created at an important level and supported by divergence, have a high verifiability, so I assess the probability of beginning a growth correction in bearish trend.

AUDCAD H4 – bullish divergence

The closest target for demand may be the supply zone starting at 0.9170, but for this to happen, the maximum OB – 0.9136 must first be effectively overcome.


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