AUDCAD – As in the title: the first bullish outside bar appeared on 21.10. The breakout from this two-candle formation was confirmed by the MACD, which entered the growth phase. The next outside bar appeared yesterday. We certainly need to approach this second formation with some reserve, because undoubtedly yesterday’s election night in the USA may be distorting the image of the market a little.

AUDCAD Daily – two formations – the bull market

The volatility that we saw yesterday does not happen often, but I assume that in the case of the so-called crosses, that is pairs without the USD, these anomalies are not so significant.

Currently, three hours before the market closes, the price is 10p above the top edge of the formation. If this condition persists until the end of the session, we will be able to conclude that the breakout is confirmed. MACD lights up green.

ongoing analysis

AUDCAD H4 - price breaks out of the next outside bar
AUDCAD H4 – price breaks out of the next outside bar

In chart H4 we can predefine the target of demand. Supply zone 0.9490 may be the first obstacle for further growth. Overcoming it may give an impulse for further increases to the next one around 0.9530. Here too the MACD is in the growth phase.

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ongoing analysis

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