This week it seems that the market is very active even without any important events, but if you have noticed today we have a heavy calendar as there are multiple events with strong and medium impacts on the USD, CAD, GBP, and this will mean that we may have more liquidity in the market compared to previous days, so it is possible to have a wider range on some pairs.
Besides that, we have been following the AUD / CAD movements for a long time and it has reached the target of the bullish scenario yesterday, so we will talk about that in we will also discuss a trading opportunity on the CAD / JPY.
Technical analysis of AUD / CAD:
As I mentioned, this pair has reached the target from my last post about it, as we can see on the attached chart
Since the price has exceeded our target, it seems to me that the bullish movement will continue targeting the opening of the engulfed candle on the weekly chart.
If the price exceeds the resistance level of 0.9325, this will mean the engulfing pattern on the weekly chart has failed, and this in turn will mean the continuation of the bullish movement in the long term.
CAD/JPY Technical analysis:
yesterday this pair has broken the support level 86.06 on the H4 frame, and this comes after the formation of a divergence between the price and the MACD indicator on the daily chart, the possibility of retesting the broken support is there, but in general, the pair is for selling in the medium term.
There is something that should be taken into account, which is that the price has so far been moving above the opening of the previous month's candlestick, which means that all this bearish decline on the H4 frame could be just a correction.
but in case if the price managed to move below 83.67 and close at lower levels by the end of this month, it may present a long term bearish scenario due to the formation of the engulfing pattern on the monthly chart.
Choosing a target for the current trading opportunity will not be difficult, as the closest support level is 84.73 on the daily chart.
Note: Both analyses support the weakness of the Canadian dollar, and since there are many important events related to this currency today, I expect their results to be negative.
This is all for today, thanks for visiting and good luck