Good day traders! It still amazes me how a market tends to find support and resistance at a specific angle. The recent low in March this year on the AUD/CAD found support right at the upper median line of a pitchfork. The angle of the pitchfork’s lines – when projected from other swing highs and lows – also acted as support/resistance on multiple previous occasions.
Price is currently approaching the upper red warning line of that same pitchfork, a 0.618% Fib retracement level, and a previous zone of support that might now act as strong resistance.
This aggressive move to the upside will most likely end soon and correct lower. Should a reversal take place from within that resistance zone or at the upper red warning line, then we could see the AUD/CAD decline towards the 0.9231 level at a minimum.
More updates to follow.
Bias: Bearish if price reaches and reversed from the resistance zone.
Potential Resistance: 0.9506 – 0.9685
Target: 0.9231 with more targets to be identified later.
Until next time, have a great weekend and stay safe!