Fibonacci Retracements Analysis 07.05.2020 (AUDUSD, USDCAD)

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, the divergence on MACD made the pair complete the uptrend at 76.0% fibo. 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. the resistance is the high at 0.6569.

In the H1 chart, AUDUSD is falling towards 23.6% at 0.6318. The structure of the current movement reminds a Contracting Triangle pattern.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after testing the low and rebounding from it, the pair has finished another ascending wave towards the resistance at 23.6% fibo at 1.4262, thus forming a mid-term sideways channel between 23.6% and 50.0% fibo at 1.4262 and 1.3808 respectively. in the nearest future, USDCAD may start a new descending impulse. The downside targets remain at 50.0% and 61.8% fibo at 1.3808 and 1.3606 respectively.

In the H1 chart, the pair is starting to reverse after the divergence. The first descending impulse is approaching 23.6% fibo at 1.4096. The next downside targets may be 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.4049, 1.4011, 1.3937, and 1.3928 respectively. The resistance is the local high at 1.4172.