AUDCAD after a strong sell-off and breaking support at 0.9924, reached trend line extending from May 2009 low as discussed in the last analysis. At the same time, I pointed out that on the trend line offers could appear and thus lead to a bullish correction.
Looking at price action in past few days, such a scenario seems quite likely. On daily chart, Fakey formation was formed, which is simply a fake breakout from a inside bar. In addition, quotes at closing sessions are still above support provided by the upward trend line.
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The mentioned Fakey formation usually announces a reversal, which in this particular case can lead to a growth movement. In bullish scenario nearest target will be the broken support area at 0.9924, which now holds as resistance together with dynamic 20-day SMA, as well as vicinity of supply candle high at 0.9980.
