Taking a look at one of the lesser crosses and attempting to place any fundamental bias to one side – AUDCAD could have a tale to tell .
We are fast approaching a big level here as we are within a hairs breath of the 61.8% (yet to be challenged) fib of a very long standing low to high backing up from August 2015 to the highs of early November 2016.
We have breached the previous lows back in January for the second time this week and are setting up for a showdown with the 61.8% at 0.9624. The weekly chart below sets the scene for the bigger picture. We have a trio of indications in our present area – longer term fib / trendline / triangle formation .
The first touch of the 50% fib (11 Dec 2016) resulted in a 100+ pip reaction to the upside, before eventually giving way and falling towards present levels and reversing. As we can see by the hourly chart below, the 50% still managed to play a role in holding up price action even after it failed to hold, and became one of those areas that continued to effect price.
We are almost down to the line now (61.8% ) at the time of writing, So if past history is anything to go by,… this will be interesting .
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