AUD/CAD is heading for a multi-month resistance zone!
Suppose the pair faucets the ceiling once more and stalls out for one more day?
Or are we seeing the early indicators of an upside breakout?
AUD/CAD 4-hour Foreign exchange Chart by TradingView
Constructive Australian knowledge and the market’s comparatively much less dovish view of the Reserve Financial institution of Australia’s (RBA) bias helped elevate the Australian greenback over the Canadian greenback in late November.
Nevertheless, delicate Chinese language readings, underwhelming mid-tier Australian knowledge, and a rebound in crude oil costs might put a cap on the Aussie’s good points in opposition to the oil-related Loonie.
Do not forget that directional biases and volatility circumstances in market value are sometimes pushed by fundamentals. When 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 every day basic information!
AUD/CAD, which bounced increased from the .9075 space, is now on observe to check the .9200 psychological stage and the highest of a variety sample that has saved the bulls in test since October.
This time, the .9200 zone additionally traces up with the R1 Pivot Level at .9186.
Bearish candlesticks and a flip decrease from that resistance zone might pull AUD/CAD again towards the mid-range ranges close to .9135 and the 100 and 200 SMAs. If sellers construct sufficient momentum, AUD/CAD might even revisit areas of curiosity nearer to the .9075 vary help.
But when the Aussie retains a bullish lean in opposition to the Loonie, AUD/CAD might lastly push via the .9200 resistance for the primary time in weeks and make a run towards increased inflection ranges like .9240 or .9270.
Whichever bias you find yourself buying and selling, don’t overlook to observe correct danger administration and keep conscious of top-tier catalysts that might affect general 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 spotlight 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.
