Mthokozisi Mpofu
Knars Capital
The chart below shows AUD/CAD has been in a bullish impulse since the 21st of October it completed our wxy pattern. Since then, we have been moving higher and have reached the 161.8 Fibonacci extension of wave i projected on ii at 0.95915.
We are now looking for a correction lower before we continue higher. The correction marked below is for an expanded flat correction to complete the abc correction at 0.94997.
We have 3 waves down as part of wave a. We are now forming 3 waves up for b and, the final move will be 5 waves down for c to complete our corrective pattern. At 0.94997 we can start looking for long positions.
Key news events to look out for Private Capital Expenditure q/q.
Res: 0.95933; 0.95500; 0.96815
Sup: 0.95382; 0.95000; 0.94475
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
Latest Forex Analysis
Editors’ Picks
EUR/USD hits fresh one-month low amid souring market mood
EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points.
GBP/USD retreats toward 1.36 amid fresh dollar strength
GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown.
Gold extends sideways grind near $1,850
The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.
Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed
Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative.
DXY breaks above key downtrend, eyes move above 91.00
USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.