Good day traders! The AUD/CAD has found support at the lower median line of a long-term pitchfork and the lower red warning line of shorter-term pitchfork after a hard sell-off.
Price is currently rebounding strongly to the upside, but I am viewing this as a corrective phase within a larger bearish downtrend.
The first overhead level of resistance lies at a 0.382% Fib retracement level at 0.8956 and if price eventually overcomes that level, then we could see a move into either the 0.5% or 0.618% Fib retracement levels before a proposed correction might end.
It will be too early to say how high price could go, but AUD/CAD will most likely correct for a few weeks before another sell-off takes place which could see price test last week’s low at 0.8065 or even drop lower towards the October 2008 closing price at 0.7608.
More updates to follow.
Bias: Bearish after a correction.
Targets: 0.8065 and 0.7608
Until next time, have a great day and stay safe!