Missed the symmetrical triangle breakout on this pair?
AUD/CAD still seems to be in the middle of a pullback to the broken resistance!
Take a look at these inflection points.
AUD/CAD 1-hour Forex Chart by TradingView
The Aussie surged higher earlier this week after the Reserve Bank of Australia kept interest rates on hold at 3.60% and dampened further easing expectations.
Later in the day, mostly weaker than expected U.S. jobs data fueled downbeat NFP expectations, weighing on the dollar and the correlated Loonie.
Can AUD/CAD resume its climb after this retracement?
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!
Price is pulling back to the 38.2% Fibonacci level close to R1 (.9180), which could be enough to attract more Aussie bulls. A larger correction could reach the 50% Fib at .9160 or the 61.8% level closer to the broken triangle top and 100 SMA dynamic inflection point.
Note that the faster-moving SMA is above the 200 SMA to suggest that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse.
Look out for reversal candlesticks at the support levels, as a bounce could take AUD/CAD back up to the swing high near R2 (.9230) or higher.
On the other hand, long red candles closing below the Fibs could suggest that bears are taking over, possibly dragging the pair back to the next support at the pivot point (.9130) then S1 (.9080).
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.
