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AUD/CAD is Pair to Watch

Last updated 4/7/2009 1:40 PM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

Currently, the AUD/CAD is at somewhat of a turning point as we are seeing exceptional medium to long term Fibonacci convergence on both the long and short side. Price action over the next 24-48hrs will be critical.

Ideally, we would like to see prices dip to 4hr bullish Gartley pattern completion in order to establish a long position. There is a bit of room to up to 78.6% of AB (0.8890) for point C to establish itself, and assuming this level of resistance holds we have a valid bullish Gartley pattern projected to complete near the following levels...

All three levels reflect valid bullish Gartley pattern completion allowing us to potentially scale into this long position with stops set below 0.8550. We're also seeing bull trendline support near these levels adding a bit of bullish confirmation. The current top at point A (0.8932) reflects 127.2% weekly resistance so a dip to these levels is certainly possible.

In terms of profit targets, the weekly chart also shows an extremely symmetrical bearish Gartley pattern projected to complete near 0.9266-75 on AB=CD completing at 78.6% of XA and 161.8% of BC. This would then reflect the final target to any bullish position, as well as a new short entry (swing reversal).

Weekly Chart - Bearish Gartley pattern potential at D	4hr Chart - Bullish Gartley Potential at D

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