CAD, Aussie and Gold Weekly Update - April 15/18 close

USDCAD

Price reached near 0.9680 level in the expected direction for the Loonie, however the three last days of the week there has been a significant rejection from the highs. On weekly charts this pair respected the lower trend line of the descending channel and the week was overall bullish but with a 50% retracement, closing above the round number 0.9600. Yesterday we saw a strong push up to the daily SMA34 after the news, reversing all those gains before NY close below the daily middle line of the Bollinger bands. The pair has continued to the downside today, presently breaking support and trading at 0.9580. I would expect a bearish continuation to the lows at 0.9530/20, again touching the weekly lower channel line, with a possible extension to 0.9500/0.9480 where, being inside a falling wedge, we could regain bullish sentiment and aim towards 0.9700/0.9750.

AUDUSD

The Aussie climbed just a little more last week (1.0580), but remained at a respectable distance from the round number 1.0600. We might have considerable stops building up there. The weekly candle is a long-legged doji and a reversal potential, however it would have to be confirmed this week. Usually doji candles in this pair are very tricky and shouldn’t be trusted, unlike for the EURUSD for example. We have a double top on the daily charts which confirms our expectances for at least a significative correction in three steps: Thursday’s lows at around 1.0460 (already reached yesterday) 1.0415/30 support zone at the middle line of the daily Bollinger bands and also 4-hour SMA100, and much lower next support zone between 1.0290/60 (early April lows support and December 2010 highs resistance). In my opinion the pair might opt for a consolidation between 1.0460/1.0560 and we could see another extension breaking 1.0600 despite all the bearish elements. I will conservatively be targeting 1.0650 for this move. I don’t think it’s time for a deep correction yet, however beware if 1.0400 level is clearly broken later on.

XAUUSD (GOLD)

Less than 3 pips left to reach the expected round number 1500.00 for Gold!

Today might see a break of this level and be prepared for the resulting market actions. I would expect the price to reach 1510.00/20.00 (weekly 138.2% extension and daily 161.8% extension) and then perform a correction to last week’s broken level at 1470.00. This week is possibly a very interesting week for all pairs.