~ Week Of Jan 9th 2017 ~
Has The Downtrend Come To An End?
Published By Jay - Jan 12th 2017
November of 2016 saw the beginning of a price turnaround for the AUDCAD, which resulted in the market trending downward to a previously respected level. Looking at the zoomed out daily chart below, we can see that the players in the market have reacted around this level a number of times. This has resulted in the formation of an important level that we can watch and use to determine the direction the market may take in the future.
Zooming in on this same chart reveals clearly that the sellers then went on to force price lower, resulting in it punching down through this important level. However, it's evident that they lacked the strength and support to keep its momentum running. Buyers have now entered the market and the value of the AUDCAD has increased, pushing back up through the key level.
Will price now remain above this level? Will we see a retrace back to the key level before a possible move higher? There is potential for us to make some good profit on this pair if we get the right indications to buy and the confirmation we need to make a safe trade. We will watch with interest to see what happens next..........