Let's keep this brief. An exchange rate is the price one currency is exchanged for another.
Let's take a look at AUDCAD.
It's in a downtrend, and there are three important exchange rates.
The 1st significant rate is the previous high at 0.89023. That is the last highest price Canadians bought 1 Australian dollar.
The 2nd significant rate is the lower low at 0.87364. That is the lowest price Canadians bought 1 Australian dollar.
Can you guess the last significant rate?
It's the rate price will travel to next, and you should hope that it will go past the last lowest price.
The reason for this is that price is in a downtrend.
I don't want to bore you with the details, so I made a quick video to show you the exact trade I plan to take on this pair.
Also, remember this,
You trade exchange rates. To be a great trader, you want to know the most important rates, and they don't always include you going years back to find them.
They can mostly be right in front of your face as soon as you open up the price chart.
If you didn't know, I use Tradingview to do my analysis. You should too.
Feel free to leave a question below if you have any.