Downward trend
AUDCAD continues its downward movement started on 10 November. On the chart is clearly readable continuing downward trend which was interrupted only once by bullish correction which took the form of a simple adjustment ABCD, where sections AB and CD are equal.
Target of bears 0.9600
On Friday AUDCAD broke important support at 0.9790 and Monday’s opening was with a bearish gap below 0.9730 support. At present, there may be two scenarios. The first will test the key level of 0.9790 from the bottom and there supply will return to the game.
Looking at the current weakness of demand this scenario is less likely. The second scenario, which simultaneously is the most likely to be is further downward movements to the support level of 0.9600. There just may occur more consistent rebound. Will it happen currently is difficult to predict, but it is worth to carefully observe the level of 0.9600, when AUDCAD declines to that level.
