AUD/CAD is hitting a technical resistance after jumping from a previous support zone!
Will the pair stick to its range? Or will we see a breakout in the next trading sessions?
Here’s what we’re seeing on the 4-hour time frame:
AUD/CAD 4-hour Forex Chart by TradingView
The Australian dollar picked up a few pips against its Canadian cousin as easing U.S.-China trade tensions lifted overall sentiment, and rising gold prices gave the gold-linked comdoll an extra boost.
The Loonie, on the other hand, struggled as oil prices slipped and domestic data came in mixed.
That could all shift in the coming sessions, though, with traders bracing for a potentially hotter-than-expected Canadian CPI report that could shake things up for both currencies.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/CAD, which bounced from the .9065 October support late Friday, climbed toward the .9152 R1 Pivot Point and mid-range area before pulling back.
A few more bearish candles and sustained action below .9150 could set the stage for a downside move that takes AUD/CAD back toward its .9060 support.
But if buyers step in and the pair breaks clearly above the mid-range zone, that could invite fresh bullish momentum toward the .9220 highs last seen in September.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
