AUD/CAD is chillin’ like a villain at the very top of its long-term range, still deciding whether to make a break for it or head back to nearby support zones.
Take a look at these potential upside and downside targets on the 4-hour chart.
AUD/CAD 4-hour Forex Chart by TradingView
This forex pair has been tossing and turning between support around the .9075 mark and resistance at the .9225 level for the past three months.
Upbeat jobs and inflation data from Australia have been highlighting the RBA’s shift to a less dovish stance while risk-taking has generally favored the higher-yielding Aussie as well.
Now that AUD/CAD is hanging out at the long-term ceiling, will we finally see a breakout?
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!
Long green candlesticks busting through the range resistance and R2 (.9230) could be enough to signal a bullish break, potentially sending AUD/CAD to the next bullish target at R3 (.9280) then R4 (.9340).
On the other hand, reversal candlesticks at current levels could reflect hesitation among Aussie bulls, possibly dragging the pair back down to support zones.
In this case, watch out for a dip back to R1 (.9190) near a major psychological level or to the pivot point (.9140) close to the dynamic inflection points at the moving averages. Stronger selling pressure could bring AUD/CAD all the way down to S1 (.9100) or the range support.
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.
