AUDCAD Up 1 Pips On Hourly Chart, Came Into Today Down For the 3rd Straight Day; Breaks Below 20 Day Average

Hourly Update

(Last Updated September 8, 2020 15:12 GMT)

Currently, AUDCAD’s rate is up 1 pips (0.01%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on AUDCAD. Given that we see downtrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

AUDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

AUDCAD is down 36 pips (0.38%) since yesterday (opening today near 0.95085), marking the 3rd straight day a decrease has occurred. Relative to other instruments in the Forex asset class, AUDCAD ranked 34th yesterday in terms of percentage price change. The price chart of AUDCAD below illustrates.

AUDCAD

AUDCAD Technical Analysis

First things first: AUDCAD crossed below its 20 day moving average yesterday. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 30 days AUDCAD’s price has gone up 15 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on AUDCAD, with 16 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 0.94, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The price moves slowly along the channel….And at the moment it is near the support line – at the bottom of the channel….I expect the price to move up to the resistance line.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram