Now that the long-term vary resistance on AUD/CAD seems to be holding as a ceiling, can the pair acquire sufficient bearish traction to make it all the way down to the underside?
Or can it make one other try at an upside breakout?
Listed below are the inflection factors I’m watching on the 4-hour time-frame.
AUD/CAD 4-hour Foreign exchange Chart by TradingView
The Reserve Financial institution of Australia (RBA) gave a much less dovish financial coverage announcement earlier this week, however that didn’t appear sufficient to hold this Aussie pair previous the important thing resistance close to the .9200 main psychological deal with.
In any case, the Financial institution of Canada (BOC) sounded a tad extra optimistic in final week’s rate of interest assertion as properly, suggesting that the central financial institution may be approaching the tip of their fee minimize period.
Is AUD/CAD about to go additional south from right here?
Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. When you haven’t but achieved your homework on the Australian greenback and the euro, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
The pair is at present hovering across the space of curiosity close to S1 (.9130) and one other bounce may very well be sufficient to spur a check of near-term resistance zones on the pivot level (.9170) then the vary resistance close to R1 (.9210).
However, lengthy pink candlesticks piercing under S1 might verify sufficient bearish strain for a possible check of assist close to S2 (.9090). Look out for stronger draw back momentum that would even set off a break decrease and a transfer in the direction of the following bearish goal at S3 (.9040).
Simply you should definitely hold your eyes and ears peeled for BOC Governor Macklem’s testimony, as his rhetoric might proceed to form financial coverage expectations.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct threat administration and keep conscious of top-tier catalysts that would affect general market sentiment.
Disclaimer:
Please remember 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 spotlight 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.
