Fibonacci Retracements Analysis 14.05.2020 (AUDUSD, USDCAD)
AUDUSD, “Australian Dollar vs US Dollar”
As we can see in the H4 chart, the previous growth couldn’t break the high at 0.6569, which means that the pair is starting a new correction the divergence on MACD. In the nearest future, the price is expected to fall towards 23.6% fibo at 0.6318 and break it. After that, the instrument may continue moving downwards to reach 38.2%, 50.0%, and 61.8% fibo at 0.6162, 0.6039, and 0.5915 respectively.
In the H1 chart, after AUDUSD had reached the resistance level not far from the high, there was a divergence on MACD and the price started a new descending wave with the first target at 23.6% (0.6318).
USDCAD, “US Dollar vs Canadian Dollar”
As we can see in the H4 chart, USDCAD is forming a long mid-term sideways channel; it is once again trying to grow and test the resistance at 23.6% fibo at 1.4262. If the pair breaks this level, it may grow to reach the high at 1.4668. At the same time, the instrument may yet rebound from the resistance after testing it. In this case, the downside targets will remain at 50.0% and 61.8% fibo at 1.3808 and 1.3606 respectively.
In the H1 chart, the convergence on MACD made the pair finish the descending correction at 76.0% fibo and start a new ascending wave, which has already reached 76.0% fibo. The next upside target may be the high at 1.4127 and then the post-correctional extension area between 138.2% and 161.8% fibo at 1.4275 and 1.4340 respectively.