Technical Analysis – AUDCAD leapfrogs higher; will the bears react?
July 12, 2023 3:29 pm
AUDCAD is recording an impressive green candle today, the strongest 1-day move higher since the May 2, 2023 session. The pair is currently hovering just below the busy 0.8927-0.8970 area, quickly recovering from the 2023 low of 0.8739 recorded on June 30. The medium-term trend clearly remains bearish and the current upleg could be seen as a healthy reaction by the bears.
The stochastic oscillator is probably not sharing the same feeling as this indicator is on a decent upward path, above its moving average. Similarly, the RSI has just crossed above its midpoint and is showing an appetite for higher prints. On the other hand, the Average Directional Movement Index (ADX) remains uninterested in the current price action and remains stuck below its 25-threshold.
Should the bulls feel inspired by today’s move, they would try to clear the 0.8927-0.8970 range that is populated by the December 3, 2021 low, the 50-day simple moving average (SMA) and the 23.6% Fibonacci retracement level of the February 25, 2021 – October 20, 2022 downleg respectively. If successful, they would try their luck at the 0.9003-0.9040 range defined by the 100- and 200-day SMAs.
On the flip side, the bears are not enjoying today’s price action and they would be keen for a move lower. The first target could be the June 6, 2002 high at 0.8843. This level will probably prove easier to break compared to the more important October 20, 2022 upward sloping trendline and the January 26, 2023 downward trendline that would then stand in the bears’ way.
To sum up, with most momentum indicators tentatively supporting a continuation of today’s strong move higher, AUDCAD bears could quickly be put in an uncomfortable position.
AUDCAD is recording an impressive green candle today, the strongest 1-day move higher since the May 2, 2023 session. The pair is currently hovering just below the busy 0.8927-0.8970 area, quickly recovering from the 2023 low of 0.8739 recorded on June 30. The medium-term trend clearly remains bearish and the current upleg could be seen as a healthy reaction by the bears.
The stochastic oscillator is probably not sharing the same feeling as this indicator is on a decent upward path, above its moving average. Similarly, the RSI has just crossed above its midpoint and is showing an appetite for higher prints. On the other hand, the Average Directional Movement Index (ADX) remains uninterested in the current price action and remains stuck below its 25-threshold.
Should the bulls feel inspired by today’s move, they would try to clear the 0.8927-0.8970 range that is populated by the December 3, 2021 low, the 50-day simple moving average (SMA) and the 23.6% Fibonacci retracement level of the February 25, 2021 – October 20, 2022 downleg respectively. If successful, they would try their luck at the 0.9003-0.9040 range defined by the 100- and 200-day SMAs.
On the flip side, the bears are not enjoying today’s price action and they would be keen for a move lower. The first target could be the June 6, 2002 high at 0.8843. This level will probably prove easier to break compared to the more important October 20, 2022 upward sloping trendline and the January 26, 2023 downward trendline that would then stand in the bears’ way.
To sum up, with most momentum indicators tentatively supporting a continuation of today’s strong move higher, AUDCAD bears could quickly be put in an uncomfortable position.
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