~ Week Of July 11th 2016 ~
Attempt To Push Lower Fails
Published by Jay - July 10th 2016
The AUDCAD has made some steady gains since late May, as shown by the upward movements present on the daily chart. There was a huge attempt by the sellers in the market to make a push lower on the 24th of June. However, as shown by the large candle wick on that day, price could not hold its position and ended up closing around 214 points higher with the buyers clearly in control.
We can see that by the end of the New York trading session on Friday, the market had made a strong break through the key level and closed above it. The fact that the breakout candle has an upper wick, indicating a pullback, may suggest that we will see price rotate lower again down to the key area.
If price does proceed to move down again, we will look for an entry signal to buy into this pair in light of the recent suggestions that the bulls have control of the market. Here at Currency Collective we always make sure to backup our trading decisions and market entries with clear and solid trade entry signals. In no way do we try to guess or take a punt on market direction. The use of candlestick charts play their part in helping us to make these decisions as they provide us with a great deal of information compared to bar or line charts, and give us a good insight into what the big players are doing.