AUDCAD – IHS Reversal, now pausing at Fib on route to Target
AUDCAD bottomed out with an reversal which was confirmed with a break through the neckline at 0.97054. The pattern targets 0.985 which currently aligns with the 200 DMA which is a useful reference for aligning longer term directional bias. Currently we can see price is undergoing a natural pause around the 38.2% Fib. retracement level of the Mar-May surge in CAD strength as well as support turned resistance off the corrective dip mid Feb 18.
Short term target is the 50% Fib level at 0.99 which is frankly close enough to 1.00 for this to be a sensible target zone, expect a few candle wicks penetrating and failing at this level before we see the next wave of momentum