Fibonacci Retracements Analysis 06.02.2020 (AUDUSD, USDCAD)

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, after testing the low at 0.6670, the pair has started a new correctional uptrend, which is heading towards the resistance level, which is at 61.8% fibo (0.6808). After finishing the pullback, the price is expected to start a new wave to the downside and break the low. Later, the instrument may continue the descending tendency towards the post-correctional extension area between 138.2 and 161.8% fibo at 0.6532 and 0.6445 respectively.

The H1 chart shows more detailed structure of the current correction after the convergence on MACD. The first rising wave has reached 23.6% fibo and may continue towards 38.2%, 50.0%, and 61.8% fibo at 0.6813, 0.6855, and 0.6897 respectively. The support is the low at 0.6678.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, USDCAD continues growing steadily towards the fractal high at 1.3328; this movement may be considered as an attempt to form a proper wave towards the long-term high. After breaking the local high, the instrument may continue trading towards the post-correctional extension area between 138.2 and 161.8% fibo at 1.3471 and 1.3559 respectively. At the same time, there is a divergence on MACD, which may indicate a possible pullback in the nearest future. The local support is at 61.8% fibo (1.3185).

The H1 chart shows more detailed structure of the current correction after the divergence. The correctional targets are 23.6%, 38.2%, and 50.0% fibo at 1.3241, 1.3202, and 1.3170 respectively. The resistance is the high at 1.3304.