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AUDCAD is on the verge of breaking higher.
I wrote about this descending channel on September 5.
In that post, I was relatively bullish. Or at least I was more bullish than bearish as the video in the member’s area would imply.
My reason for thinking AUDCAD could break higher had to do with the timing of this latest retest of channel resistance.
Notice how it has taken less than 40 trading days to retest resistance at 0.9050 since the July 23 session.
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Now, compare that to the 70 days it took between the channel inception in April and that late July touch.
Whenever a market begins to test an area more rapidly, it’s time to pay close attention as a breakout may not be far off.
So did AUDCAD break the 0.9050 resistance area on Wednesday?
It’s a close call; maybe too close to say one way or the other.
We should have more proof as soon as the pair begins to retest 0.9050 as new support.
As long as AUDCAD stays above 0.9050, that 0.9230 region is exposed.
That said, I think 0.9200 could be a factor on the way up.
Not only is it a round number, but it’s also 150 pips from the breakout level at 0.9050.
That’s significant as the recent range for AUDCAD was between 0.8900 and 0.9050, which is also 150 pips.
Last but not least, keep in mind that the July 10 low at 0.9070 could attract sellers.
That’s why I wrote this as a range between 0.9050 and 0.9070 on the 5th.
For now, though, it all depends on how well buyers keep prices bid above that 0.9050 handle.