AUD/CAD has been moving sideways lately and it looks like the range resistance is holding once again!
Take a look at these potential targets on the 4-hour chart.
AUD/CAD 4-hour Forex Chart by TradingView
Stronger than expected Australian CPI data released earlier this week lifted this pair up to its long-term range resistance, which had been holding since mid-September.
However, reversal candlesticks formed around R2 (.9200) to suggest that bears are still defending the ceiling for now, especially since the BOC seemed less dovish in their latest announcement.
Is AUD/CAD setting its sights back down on the range support?
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 hanging out at R1 (.9160) near the 200 SMA dynamic support, and the 100 SMA cruising below this area suggests that further downside could be in the cards.
If so, look out for a continuation of the selloff to the next bearish target at the pivot point (.9110) then to the bottom of the range near S1 (.9070).
On the other hand, a bounce of the area of interest at the middle of the range around the .9150 minor psychological support could take AUD/CAD back up to the top again.
Just be sure to keep close tabs on trade-related headlines, particularly the Trump-Xi meeting, as the outcome of negotiations between the U.S. and China could trigger directional moves for commodity currencies.
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.
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