It’s a battle of the comdolls!
AUD/CAD is fast approaching a key technical resistance area on the 4-hour time frame.
Will the pair stick to its pattern? Or will we see a breakout in the next trading sessions?
AUD/CAD 1-hour Forex Chart by TradingView
Higher gold prices and an improvement in market risk sentiment are pushing the Australian dollar higher against its Canadian counterpart so far this week.
But the Loonie might still draw some support from stronger U.S. dollar demand, even as commodity-linked currencies take a hit from falling oil prices after the Israel-Hamas peace deal.
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!
AUD/CAD, which has been in an ascending triangle pattern since September, recently bounced from the 100 SMA that lines up with the triangle’s trend line support.
The pair is now trading near the .9200 psychological handle, which sits close to the triangle’s resistance on the 4-hour chart.
A bearish bounce from this area could pull AUD/CAD back toward the .9200 handle, the .9180 Pivot Point line, or even the .9160 area near the 100 SMA.
But if the current upswing continues and price holds above .9220, the pair could climb toward the .9250 zone near the R1 Pivot Point or even test fresh 2025 highs around .9300.
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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