From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H1/M30.
AUDCAD currency pair since mid-2013 moves in a consolidation. Currently market is approaching the vicinity of its upper limit and a possible defeat or rejection of this resistance could determine the direction of movement in the near future.
Looking on the weekly chart it is worth noting that Stochastic oscillator is strongly overbought and recent slowdown in demand . If the growth will continue, but dynamics will remain at the current, relatively low level, we expect to reject the upper limit of consolidation
On 4-hour chart we see that recently market is not re-testing the broken resistance but instead far more accurately is testing and respects the limitations of growth channel.
Looking at the graph H1 we notice that the market is now re-testing the local support area but considering that recently the majority of similar re-testing ended with false breakouts, even if the current support will be defeated, this would not mean clear negation of pro-growth scenario assuming continued increase in the vicinity of the aforementioned upper limit of consolidation.
It is worth remembering that it is only a short-term projection. In longer term we expect weakening of the Australian dollar and this is supported by the words of Governor Lowe, who tonight referred to the too expensive AUD.
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