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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD pressured as EZ ministers fail to reach a deal

EUR/USD is trading around 1.0850, down on the day. Eurozone finance ministers failed to reach a deal on a joint response to the coronavirus crisis. Disease-related headlines are eyed.

EUR/USD News

GBP/USD is hovering around 1.23 as updates on the PM are awaited

GBP/USD is trading around 1.23, stable. Updates on PM Johnson's condition are eyed amid fears of a partial power vacuum. Updates related to the disease are eyed.

GBP/USD News

Forex Today: Dollar bounces as coronavirus keeps spreading, Johnson still in ICU, Fed minutes eyed

The market mood is mixed after US stock gains vanished late on Tuesday. The slide allowed the dollar to recover, and it is rising across the board early on Wednesday. Coronavirus has already infected more than 1.4 million and taken the lives of over 82,000 people. 

Read more

WTI pierces $25 amid mixed clues, EIA data eyed

WTI holds onto recovery gains. The US catalysts seem to drive energy prices more than from the Middle East. API data escalated the inventory build, EIA might follow the footprints. Coronavirus crisis weighs on the market sentiment. 

Oil News

Gold regains $1,650 amid cautious trade sentiment

Gold defies the pullback from the monthly top. While Monday’s coronavirus (COVID-19) data suggested receding fears of the deadly disease, the latest figures keep the risk-off alive. The US FOMC minutes will decorate the economic calendar.

Gold News

Forex Majors

Cryptocurrencies

Signatures