{"id":59403,"date":"2014-08-27T16:48:14","date_gmt":"2014-08-27T20:48:14","guid":{"rendered":"http:\/\/countingpips.com\/?p=59403"},"modified":"2014-08-27T18:00:07","modified_gmt":"2014-08-27T22:00:07","slug":"audcad-sell-off-shows-exhaustion-signs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/audcad-sell-off-shows-exhaustion-signs\/","title":{"rendered":"AUD\/CAD Sell-off Shows Exhaustion Signs"},"content":{"rendered":"<div id=\"inves-2353672528\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 27, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <span style=\"color: #ff0000;\"><strong>Bearish<\/strong><\/span><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Bearish Engulfing Bar paid off big time for sellers;<\/li>\n<li>Pivot zone at 1.0115 was tested late in the U.S. session;<\/li>\n<li>A downtrend will form only if traders manage to crack the pivot zone.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>Trends are not built on rumors; hence the Canadian Dollar strength we have witnessed today was very likely a one time show.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/AUDCAD27thAugust.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6030\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/AUDCAD27thAugust.png\" alt=\"AUDCAD27thAugust\" width=\"700\" height=\"348\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">In recent weeks AUD\/CAD has been under the influence of a choppy market personality between 1.0115 and 1.0230. On Tuesday, the pair closed with a Bearish Engulfing bar on the daily chart, near 6<sup>th<\/sup> August top, forming a short term double top in the process. From a technical perspective, these signals were enough to put buyers on the edge. When sellers drove AUD\/CAD below 1.0185, confirming the Bearish Engulfing pattern, volatility increased and the sell-off accelerated sharply down to the price pivot zone at 1.0115 (50-Day Simple Moving Average and 38.2% Fibonacci retracement level from the low of 0.9936 up to the high at 1.0231).<\/p>\n<p style=\"text-align: justify;\">Since price bounced off the pivot zone, we cannot exclude the possibility of price remaining boxed-in in what is now the 6<sup>th<\/sup> consecutive week between the same old boundaries. That being said, we would prefer to see a continuation to lower levels as soon as possible. A break below 1.0115 will immediately renew selling interest, opening targets down to 1.0050 (61.8% Fibonacci retracement level) and then down to parity, where the 200-Day Simple Moving Average will soon offer support.<\/p><div id=\"inves-63885390\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p style=\"text-align: justify;\">We currently advise against buying AUD\/CAD ahead of a heavy news day, lacking bullish price action signals, only to trade a potentially limited bounce.<\/p>\n<p>*********<br \/>\nPrepared by Alex Z., Chief Currency Strategist at <a href=\"http:\/\/www.capitaltrustmarkets.com\/\">Capital Trust Markets<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Bearish Key Takeaways Bearish Engulfing Bar paid off big time for sellers; Pivot zone at 1.0115 was tested late in the U.S. session; A downtrend will form only if traders manage to crack the pivot zone. Trends are not built on rumors; hence the Canadian Dollar strength we have witnessed today was very [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-59403","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=59403"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59403\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=59403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=59403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=59403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}