AUD/CAD Breaks Above 0.9475 | Technical Analysis

AUD/CAD traded higher today, breaking above the key resistance zone of 0.9475 and confirming a forthcoming higher high. On the 1st of November, the rate surged and broke above the medium-term downtrend line drawn from the peak of the 22nd of June. What’s more, it now looks to be printing higher highs and higher lows above a short-term upside line, taken from the low of the 24th of October. Thus, having all these technical signs in mind, we would consider the near-term outlook to be positive.

We believe that the break above 0.9475 may have opened the way for a test near the 0.9515 barrier, which is fractionally below the high of the 6th of September. If that hurdle fails to stop the bulls and breaks, then we may experience extensions towards our next resistance of 0.9560, defined by the high of the 27th of August.

Shifting attention to our short-term momentum studies, we see that the RSI rebounded and crossed back above its 70 line, while the MACD, already positive, has bottomed and just poked its nose above its trigger line. These indicators detect strong upside speed and support the case for AUD/CAD to keep traveling north for a while more.

On the downside, even if the rate falls back below 0.9475, we would still consider the near-term outlook to be positive. There would still be the likelihood for the bulls to take charge from near the aforementioned short-term uptrend line. We would like to see a clear break below 0.9410 before we assume that the bears have gained the upper hand, at least in the short run. Such a dip could initially aim for the 0.9355 support zone, the break of which could see scope for more downside extensions, perhaps towards the 0.9290 zone.

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.