By Forex Signs, Inc.
The floods in Australia seem to also drown the AUDCAD as the pair faces a bearish channel today. The pair began with price level of 1.0085; the initial candle stick at H1 time frame was bullish then it was followed by a number of bearish sticks. At the time of writing, the pair already knocked down 90 pips. The downward trend was fabricated during yesterday’s trade. Before 2010 ended, the AUDCAD trend was sleeping, and then at the start of 2011, an Elliot wave in H1 chart was determined. Two bullish corrections were seen yesterday and right now, the trend is within the fifth wave. Initial key resistance line is at 1.0057 while key support is at 0.9998. There is an expectation of minor corrections however AUDCAD is still forecast to pursue further declines. The MACD (12, 26, 9) can attest to the aforementioned analysis. The MACD signal at the moment is posted at -0.0022, the lowest value reached since December 16 of last year. The signal can navigate further down as the red line (signal) has not yet touched the peak of the yellow line (dispersion). More, the %R (14) is seen loitering on between -80 and -100. There were corrections yet the indicator remained below -80. For the longest time, the technical indicators for AUDCAD strongly indicate a trading bias of sell.
Asian Session Outlook
Yesterday’s Asian session went antagonistic for the three musketeers of the Asian currencies as they lost a couple of pips against a basket of their major currency counterparts. The Japanese yen lost more than 50 pips against the U.S. dollar, this is probably because the latter reported a good economic indicator during the trade. The EURJPY pair also gained more than 70 pips. Something fundamentally good might have happened in the EU zone. Meanwhile, the Australian dollar drowned in the bearish trend as AUDUSD fell more than 100 pips in the trend; aussie against EUR also sunk by roughly 100 pips. The New Zealand dollar, on the other hand, failed to boost as well as NZDUSD pair collapsed after a strong bullish force last week; EURNZD soared above a hundred pips also. The bearish force felt among the Asian currencies were perhaps the effect of their holiday abnormally high volatility. A strong correction might have probably been made.
For today’s session, there are no economic indicators for the Japanese yen and New Zealand dollar. Traders can expect that the trend would depend on the indicators set for their currency pairs. Should indicators for their pairs turn worst-than-expected, chances are the yen and kiwi will channel to a bullish force.
Meanwhile, the Australian dollar may expect a streak of bullish candle sticks should the Building Approvals in November post an increase. However, there is a bigger chance that the aussie may still drown as their nation still faces problems in Queensland floods.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
