By: Colin Jessup
The AUD/CAD pair has finally broken out of the zone between 1.00 and 1.05527 that it has been trading in since April 2011. With today's market action spurred on by news from the EU of a 50% write down in Greece, the Greenback has been seriously overwhelmed and although the Loonie is strong, the Pacific Peso out of Australia is stronger. Today price broke above 1.0543 which has not been seen since 2004 and appears it could be heading for prices not seen since 1996. The monthly chart (with 1 day remaining in the month) has formed an engulfing candle spanning 715 pips (and engulfing the last 6 months of price action almost entirely) is a solid indication of higher prices to come, especially when combined with today's candle...also a bullish engulfing candle with a 225 pip range on its own.
Resistance will be almost non-existent at this level as we have a technical vacuum spanning 15 years to the left of the chart! Look for some resistance at 1.0653 1.08 and 1.10. Support can be found below at 1.0537, 1.044 and 1.035. Note: Price could very possibly pull back to the support zone of 1.0550 of slightly lower before continuing north with the Bulls.
