AUD/CAD is consolidating near key Fibonacci retracement levels!
How low will the pair go before it extends its weeks-long uptrend?
We’re checking out the 4-hour chart for clues:
AUD/CAD 4-hour Forex Chart by TradingView
The Aussie took hits last week after soft jobs data, shaky Chinese numbers, and stronger dollar demand weighed on the comdoll.
Up north, the Loonie managed to brush off falling oil prices. Traders had already priced in the Bank of Canada’s dovish cut, so when the decision hit, CAD actually got a lift in a classic sell-the-rumor, buy-the-news move.
But that was last week. With oil sliding back under $63 and Australia gearing up to post a slightly hotter CPI, AUD/CAD could be ready to pick up its weeks-long uptrend again.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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!
AUD/CAD is catching its breath around the .9100 handle, right where the 100 SMA and the 50% Fib of September’s upswing sit.
If bulls can’t get traction here, sellers could step in and drag the pair toward the .9000 to .9050 zone. That area is packed with support from the 78.6% Fib, the 200 SMA, a trend line, and even a key resistance from back in July and August.
Keep an eye out for bullish momentum at these levels. A solid push could send AUD/CAD back up to .9200 or even toward fresh September highs.
But if the pair keeps sliding, last week’s downswing could extend all the way to .8950 or even the .8900 handle.
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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