Chapter 20 Is AUDCAD continuing the downtrend?
26/03/2023
Summary
Canada CPI leads the market
Fundamental analysis
Fundamentally on this pair of AUDCAD, we saw last week the inflation rate CPI went down from 5.9% to 5.2% this result will make the Bank of Canada won't be very aggressive to increase interest rates also we have News on new housing prices YoY Went down from 2.7% to 1.4% Both this result giving negativity for the Canadian dollar, on the other hand, we don't have that much impact in use on the Australian Dollar.
Canada CPI YoY
Previous 5.9
Actual 5.2
Canada New Housing Price Index YoY
Previous 2.7%
Actual 1.4%
Technical analysis
In this 4-hour diagram chart, the market price now is 0.91280, we expect the market to push up the price to the previous supply zone at 0.91800 then we expect the price to create a new lower high inside this supply zone and then we expect the price to push even lower to the oldest demand zone at 0.90500 Creating lower high and lower low Creating downside channel with 20 moving averages pointing down.
Trading Recommendation
Trading Direction: Short
Entry Price:0.91646
Target Price:0.90628
Stop Loss: 0.92130
