AUD/CAD is consolidating close to key Fibonacci retracement ranges!
How low will the pair go earlier than it extends its weeks-long uptrend?
We’re testing the 4-hour chart for clues:
AUD/CAD 4-hour Foreign exchange Chart by TradingView
The Aussie took hits final week after delicate jobs information, shaky Chinese language numbers, and stronger greenback demand weighed on the comdoll.
Up north, the Loonie managed to brush off falling oil costs. Merchants had already priced within the Financial institution of Canada’s dovish lower, so when the choice hit, CAD truly acquired a carry in a traditional sell-the-rumor, buy-the-news transfer.
However that was final week. With oil sliding again underneath $63 and Australia gearing as much as publish a barely hotter CPI, AUD/CAD could possibly be prepared to select up its weeks-long uptrend once more.
Do not forget that directional biases and volatility situations in market value are usually pushed by fundamentals. For those who haven’t but completed your fundie homework on the Australian greenback and the Canadian greenback, then it’s time to take a look at the financial calendar and keep up to date on every day elementary information!
AUD/CAD is catching its breath across the .9100 deal with, proper the place the 100 SMA and the 50% Fib of September’s upswing sit.
If bulls can’t get traction right here, sellers might step in and drag the pair towards the .9000 to .9050 zone. That space is filled with help from the 78.6% Fib, the 200 SMA, a pattern line, and even a key resistance from again in July and August.
Maintain an eye fixed out for bullish momentum at these ranges. A strong push might ship AUD/CAD again as much as .9200 and even towards contemporary September highs.
But when the pair retains sliding, final week’s downswing might prolong all the best way to .8950 and even the .8900 deal with.
Whichever bias you find yourself buying and selling, don’t overlook to follow correct danger administration and keep conscious of top-tier catalysts that might affect general market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.
