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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For all you purists out there ‘) I wouldn’t class that as a textbook triangle.
On the longer term charts it points to the spot .
So do you think weekly chart will go bullish next week? Or what. Sorry a bit confused there.
Since it already reach the fibopoint 61.8. I have a trade at 0.97xx and been floating since monday.
Hi Rafedi , Welcome my friend .
My thinking was not so much about how the present weeks candle will end. More interested in ‘if’ this major fib level will play the same role as the 50% on the way down.
Seems as though you were on a good trade there following momentum .
I took a long trade in the area, along with my short term bias/ trade post, and good (partial trade) pips have been banked. It’s going to be a very interesting week ahead as many of the crosses are signaling extremes 🙂