AUDCAD is forming a bull flag from the high at 1.0048 but the pullback is still incomplete and we expect it tomove lower towards a support zone between .9741/.9573. After a 5-wave rally, the cross is now retracing aportion of the gains and the first Fibonacci retrace surfaces at .9717; once the wave-(2) correction completes wewill look for the start of another strong rally to beyond 1.0048. (daily)S/t, the hourly chart shows that the wave-(b) retraced stalled right at the 61.8% Fib level. All that is left tocomplete the correction is for wave-(c) lower to complete; wave-(c) will equal (a) at .9744. A small bear flagindicates that support at .9866 will give way as prices move to .9829. Resistance is .9909 and .9967. (hourly)Levels: Support – .9866, .9825, .9744 Resistance – .9909m .9967, 1.0048
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Nomura