AUD/CAD 1H Chart 7/18/2012 8:02AM EDT
The 1H AUD/CAD chart shows a bullish breakout as price pushes above a near-term triangle pattern as well as put in new highs for the week. The breakout immediately comes up against the high from last week at 1.0460, a resistance pivot that was followed by a very sharp drop to 1.0316 in about one global session. The 1H RSI shows bullish momentum starting to build up as the RSI tagged 70, failed to fall below 40, and is returning above 60, about to tag 70 again.
As the market builds this near to short-term bullish momentum, it should be noted that the 1H time-frame shows a sideways market. So let’s take a step back and see what the market looks like in the short to medium term.
The 4H chart shows a market has become choppy after a bull run, but still maintains bullish price action with higher key lows and highs. The bullish momentum has been lost. Therefore, let’s not be too aggressive on the bullish outlook neither. A swing projection targets the 1.0490-1.0495 area.
It should be noted that if you move up to the daily chart, the market looks sideways again for much of 2011 and 2012 so far. The 200-day SMA is near 1.0350, so the further away from this level, the more tendency the market has to revert back toward 1.0350-1.04.
AUD/CAD 4H Chart 7/18/2012 8:05AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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