AUD/CAD – Price Rejecting Kumo Breakout
|If we look at the 4-hour chart of AUDCAD, we can see that the Kumo has provided a resistance zone and the price has failed to break through it. In addition to the price rejecting to break through the Kumo, it has also broken through Tenkan Sen. AUDCAD closed Friday's session below Kijun Sen suggesting possible downside movement. Tenkan Sen is downward sloping, implying that there is strong selling momentum in the short term. Furthermore, Senkou Span A is also downward sloping and diverging from Senkou Span B, indicating a continuation of the downward trend. It is worth noting that the Chikou Span is currently within the price, indicating that some sideways price action is on the horizon. So, we could see a retest of the Kumo before any strong directional move.
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