If we look at the daily chart of AUDCAD, we can see that the price has broken through Tenkan Sen on last Friday’s session, which was acting as a support level throughout Thursday session. Future Kumo is bearish, and the Chikou Span is away from the price at least for the next trading week, showing potential for a further drop in price.
Looking at the 4-hour chart, we can see that the price has found support on Senkou Span B. Tenkan Sen and Kijun Sen is downward sloping indicating there is selling momentum behind the move. Chikou Span is free of the price but is yet to break out of the Kumo. There is a bearish twist in the future Kumo, a good indication that the price is going to continue its downward trend.
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.