Embracing Uncertainty: The AUDCAD Resistance Saga - A Battle of In my analysis of AUDCAD, I pinpointed a specific area marked by ultra-high volume, suggesting a potential retest of this zone. It's worth noting that such areas are typically revisited in the majority of cases, prompting the question: am I anticipating weakness in this currency pair?
Maybe, maybe not... Let's delve deeper.
Examining AUDCAD on the weekly timeframe unveils a potentially bullish scenario. Two weeks ago, a down bar with low volume hinted at minimal selling pressure. Last week's bullish engulfing candle further reinforced this sentiment.
Should the bullish trend persist, my immediate resistance level stands at 0.90640, potentially leading to retests at 0.93500 and even 0.95000.
On the daily chart, an intriguing observation arises. Despite a widespread up bar indicating "No Demand," Friday's price action continued its ascent, defying this technical signal. Such behaviour strengthens the overall bullish narrative in AUDCAD, suggesting sustained upward momentum ahead.
However, the 4-hour chart signals potential weakness. An up bar with ultra-high volume closing mid-range indicates selling pressure. The last 4-hour bar of the trading week confirms this with a downward trend.
In conclusion, which direction will this currency pair take? My prediction leans towards an upward trajectory, contingent upon confirmation of strength from the weekly and daily charts.
Upon breaching the resistance level, I'll be vigilant for signs of testing or absence of supply, particularly focusing on low to ultra-low volume across the 1-hour and 4-hour charts.
Conversely, if prices retreat from resistance and trend lower, I'll be on the lookout for indications of no demand or upthrusts, especially across the hourly and 4-hourly charts.
