AUD/CAD - Support At 0.9870 Paused Correction
FxGrow | Jan 08, 2016 07:30AM ET
AUD/CAD - support at 0.9870 paused correction
Previous analysis was extremely precise. I pointed that currency is overbought and correction may occur in a moment, I wrote: "Correction may begin at every moment, however it is likely that current movement will lead price to supports at 1.0130 or 1.0200. If one of those levels will cause rebound, nearest support is at 0.9970 level." So it happened and price shadow (wick of the candle) exceeded firstly pointed level about 37 pips and dynamic correction occurred.
AUD/CAD doesn't like movement in consolidation and by the fact, that upward move which lasted since the beginning of November was almost vertical now correction could be also dynamic. First support at 0.9970 was broken below and a pause in declines caused second support test at 0.9870. If there will be a breakout of that level, next stronger support is located in 0.9730 area (coincided with Fibonacci 50%). At one of that supports, rebound should occur and it shows current strength of demand.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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