AUD/CAD Technical Analysis | AUD/CAD Trading: 2020-10-19 | IFCM India
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AUD/CAD Technical Analysis - AUD/CAD Trading: 2020-10-19

AUD/CAD Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 0.932

Sell Stop

Above 0.962

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Sell
MA(200) Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Neutral

AUD/CAD Chart Analysis

AUD/CAD Chart Analysis

AUD/CAD Technical Analysis

On the daily timeframe, AUDCAD: D1 is correcting down from its maximum since December 2018. It broke down the support line of the downtrend, and the downturn may accelerate. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if AUDCAD falls below the 200-day moving average and the lower Bollinger band: 0.932. This level can be used as an entry point. We can set a stop loss above the last 2 upper fractals, the upper Bollinger band and the Parabolic signal: 0.962. After opening a pending order, we move the stop loss to the next fractal maximum following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (0.932) without activating the order (0.962), it is recommended to delete the order: there are internal changes in the market that have not been taken into account.

Fundamental Analysis of Forex - AUD/CAD

Last week, the Australian dollar was the weakest among the currencies of the G10 countries due to expectations of a rate cut. Will the AUDCAD quotations continue to drop?

The downward movement of this currency pair signifies the weakening of the Australian dollar against the Canadian. The next Reserve Bank of Australia (RBA) meeting will take place on November 3. The rate is expected to decrease from 0.25% to 0.1%. The deterioration of the US-China trade relations was another negative factor for the Australian dollar, as China is Australia's main trading partner. Last week, China imposed a ban on imports of Australian coal. Previously, China limited the supply of wine, beef and barley from Australia. Chinese customs have not yet revealed the reasons for such bans. In turn, the stability of the Canadian dollar can be supported by relatively high world prices for oil and natural gas - the basis of Canada's exports. On Wednesday, investors expect Canadian inflation data and Australian retail sales.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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