AUD/CAD Price Analysis: Bears eye an opportunity to take control back to structual confluences
- AUD/CAD is the battle for the firmest commodity currency in the wake of US dollar weakness.
- The Aussie bulls, however, are overstretched and positioning data could be in for a sharp correction.
The following is a top-down analysis incorporating both the monthly and weekly charts that offer downside retracement targets with the confluence of prior structures.
The daily chart shows that there is still some work for the bears as they grapple with the bulls for territory at a critical level on the daily charts.
Monthly chart
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The monthly chart offers a downside target at the prior structure that meets a 38.2% Fibonacci retracement of the monthly bullish recovery impulse that has finally met supply.
The downside support structure has served its purpose for many years.
Weekly chart
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The weekly chart throws a spanner in the works for the bears with a structure that could hold up attempts to the monthly target where there is a confluence of the 23.6% Fibonacci retracement.
Daily chart
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The bears and bulls are now in a barroom brawl, fighting for territories either above and below the key breakout structures.
There can be no decisive trade set-up on a longer-term trajectory until either of the marked structures are convincingly broken and retested.
Shorter-term traders will be looking to take advantage of the sideways price action within the channel, AKA, the 'Barroom Brawl'.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
