AUD/CAD has retreated from its resistance level at 0.9636 and has retracted down to support level 1. Following this move, I anticipate one of the below scenarios to follow:
1. Price rejects at support level 1 and price reverts back up to the 0.9636 resistance level. If this occurs, I will wait for clear confirmation by a closed 4H bullish candlestick and will look to the MACD and RVGI for signs of a trend reversal.
2. Price breaks below support level 1 and reaches support level 2 in which price may reject at support level 2 and revert upward toward support 1 which may act as a new resistance level. If this occurs, I will wait for clear confirmation by a closed 4H bullish candlestick and will look to the MACD and RVGI for signs of a trend reversal.
1. Price rejects at support level 1 and price reverts back up to the 0.9636 resistance level. If this occurs, I will wait for clear confirmation by a closed 4H bullish candlestick and will look to the MACD and RVGI for signs of a trend reversal.
2. Price breaks below support level 1 and reaches support level 2 in which price may reject at support level 2 and revert upward toward support 1 which may act as a new resistance level. If this occurs, I will wait for clear confirmation by a closed 4H bullish candlestick and will look to the MACD and RVGI for signs of a trend reversal.