Overview:-From past couple of weeks we are witnessing that bulls are leading in the audcad and taking it to northside. Presently audcad is trading at multi year’s high of 1.0760 level which is the fresh high since feb 2012. Overall it is trading and sustaining above all the major and minor moving average lines.
Technical Analysis :-From long term prospective we can see that on weekly chart pair has given us bullish breakout of the pure consolidation i.e. range bound terrtiroy of last few years.From technical prospective we can see that a a valid breakout of previous swing’s high on the weekly chart which is a sign of bullishness. A short term uptrend line still remains intact so we will keep our view bullish and buy on dips is advised. Well the present picutre dipicts that the bulls are driving the car and they are heading for a long drive so traders and investors are advised to sit in the car and have a long position, however silver is rising up from 0.8900 level to 0.9460 level continously so some correction can’t be ruled out but these correction should be taken as buying opportunity.
Odds are in favor of bulls and intraday to weekly bias remains bullish on the pair as long as 0.9250 level remains intact on closing basis. The parabolic SAR green dots are faovring the bulls and a bullish crossover on MACD indicator is also favoring the bulls. RSI has arriving into overbought so some correction is also expected.
What Next:-The 0.9200 is immediate support level followed by 0.9100 level whereas 0.9750 level is immediate resistance level followed by 0.9850.
Trade idea:- Based on chart and studies above we would suggest to our traders and investors that buy audcad at 0.9400 level target is 0.9700 and 0.9800level with the tight stop loss of 0.9200 level on closing basis.
