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.

AUDCAD

Information provided by Sachin Kotecha and/or Sach Capital Limited is for illustrative and educational purposes only and is not considered financial advice. Sach Capital Limited can’t be held liable for your trading losses. Sach Capital Limited does not in any way guarantee that this information is free from mistakes or errors. Trading CFDs, Spread Bets, and Foreign Exchange carries a high level of risk to your capital and may not be suitable for everyone. Ensure you fully understand the risks involved and seek independent advice if necessary.

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