Weekly Analysis March 22 – 26, 2021
22 March 2021
AUDCAD bounces upside after completing three waves bearish move. The bullish divergence on the 4H time frame hints that we might be at the very beginning of a bullish correction of two waves upside. New highs are formed on the chart as well. As long as the price holds above the zone of 0.9610-0.9640 might indicate that buyers will be in control and is expected that the price might move higher towards 200 moving average, and the 38.2%(0.97522) – 50%(0.97981) Fibonacci retracement zones coincide.
After impressive rally and reaching a massive zone of 130 plus, the EURJPY slowed down and completed a breakout below a rising wedge pattern. Followed by a bearish divergence and making lower lows, that could form a potential bearish correction downside.
As long as resistance area of below holds we expect to see further bearish move.
3 classical waves down followed by a triangle pattern turn that move into an interesting trading opportunity. Breakout and hold below the triangle pattern while creating lower lows on the chart, might be a good sign if another bearish wave down.
The pair gains a classical bullish momentum on the Daily time frame, making clean higher highs and higher lows structure. After the recent pullback to the support zone, which is clearly seen as two waves correction (4H time frame), we can see buyers trying to take the control again and creating higher highs. We believe that while the price holds above 0.9220-0.9250 the bullish pressure should continue.
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