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AUD/CAD: The target for the correction

Apr 22 2019, 05:27 PM (+06) | OlympTrade.com

 

From May 2nd the US will start imposing sanctions on all countries that are buying oil from Iran. As a result, Brent oil jumped up to 74$ per barrel and gave support to the Canadian dollar, which is now strengthening against the Australian dollar.

Today we are analyzing AUD/CAD.

Technical analysis

On our working daily time frame, the pair broke down the local trend line, which was heading up. That happened after the pair touched the 61,8%. There is a divergence between the price and MACD histogram. The Williams %R indicator fell through its upper line and started returning back to the working zone.   

https://www.tradingview.com/x/GlTL6Vdr/

On the higher weekly time frame the 200-EMA is heading down, that means the global trend is bearish. The pair is trying to return back below the level 38,2% Fibo-correction – 0,9540

https://www.tradingview.com/x/ZOJoZPYK/

Results: after getting the confirmation signals from indicators (MACD lines have to intersect each other; Parabolic SAR has to reverse) – it will be possible to open long positions with a target of 0,9470.

 

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