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 smooth 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 truly received a elevate in a traditional sell-the-rumor, buy-the-news transfer.
However that was final week. With oil sliding again beneath $63 and Australia gearing as much as publish a barely hotter CPI, AUD/CAD might be prepared to select up its weeks-long uptrend once more.
Do not forget that directional biases and volatility circumstances in market value are usually pushed by fundamentals. Should you haven’t but performed 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 each 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 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 pattern line, and even a key resistance from again in July and August.
Maintain a watch out for bullish momentum at these ranges. A stable push may ship AUD/CAD again as much as .9200 and even towards recent September highs.
But when the pair retains sliding, final week’s downswing may prolong 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 threat 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 supplied 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 side of a complete buying and selling technique. The technical setups mentioned are supposed to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling selections, threat administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
