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 minimize, so when the choice hit, CAD really acquired a carry in a traditional sell-the-rumor, buy-the-news transfer.
However that was final week. With oil sliding again below $63 and Australia gearing as much as publish a barely hotter CPI, AUD/CAD could possibly be prepared to choose up its weeks-long uptrend once more.
Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. If you happen to haven’t but achieved 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 day by day basic 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 may step in and drag the pair towards the .9000 to .9050 zone. That space is full of assist from the 78.6% Fib, the 200 SMA, a development line, and even a key resistance from again in July and August.
Preserve a watch out for bullish momentum at these ranges. A stable push may ship AUD/CAD again as much as .9200 and even towards contemporary September highs.
But when the pair retains sliding, final week’s downswing may lengthen all the way in which to .8950 and even the .8900 deal with.
Whichever bias you find yourself buying and selling, don’t overlook to apply correct danger administration and keep conscious of top-tier catalysts that might affect total 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. Finally, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
