CAD, Aussie and Gold Weekly Update - April 22 close

USDCAD

The Loonie went above our expectations of last week and made a new low at 0.9453. Price was then rejected and ended on Thursday with a pin bar candle, while Friday was a day of little activity for this pais. Weekly charts show that the price went back and closed inside the descending channel. I maintain my views of a bullish move towards the previous daily highs and SMA34 at around 0.9700 as first target, which is also the 38.2% retracement in regard to the previous swing low; then the next levels are 0.9750 (50%) and 0.9800 (61.8%) close to the daily SMA100, and coinciding with the upper trend line of the weekly descending channel. At the present moment, price is seldom moving and trading inside a tight 20-pip range.

AUDUSD

Up, up and away went the Aussie again as expected, after two consolidating days at the beginning of the week. Price went all the way to the upper line of the daily rising wedge formation, outperforming our conservative target by more than 100 pips. Friday was spent in a tight struggle against the 1.0775/80 resistance which the pair hasn’t been able to break yet. This week has started with another attempt at last week’s highs and subsequent rejection but price is still in a relatively short range by now. I think that a correction to 1.6000/1.5980 (about 50%-61.8% of the last daily swing high) should apply and I would favor at least a test of round number 1.0700 which is presently barely 30 pips away. Further upside is always possible with this pair, and targets would fall between the 1.1050/1.1180 range, on a medium term view, but momentarily the pair seems to be starting the corrective move and we might have to wait for Tuesday markets for more action to take place after the Easter holidays. Price is presently trading below the daily pivot, has reached the first support and is setting up for a retest of the pivot break.

XAUUSD (GOLD)

Gold finally reached and broke the 1500.00 mark last Wednesday and stalled two pips above the 1510.00 level as expected. We are at the very tip of the daily rising wedge and a correction should apply towards the 1480.00/1475.00 zone, although it is possible that the price resumes the move and reaches near 1520.00/1530.00 before collapsing. Next strong support level is at 1450.00/1440.00 corresponding to the two March double-toppish highs.