AUD/CAD looks like it’s maintaining its uptrend despite last week’s CAD strength and AUD weakness!
Can the pair keep on making higher highs and higher lows this week?
Here’s what we’re checkin’ out in the 4-hour time frame:
AUD/CAD 4-hour Forex Chart by TradingView
Better-than-expected Canadian economic data and a bump in the prices of crude oil – one of Canada’s biggest exports – helped boost CAD higher. Meanwhile, a lack of Australian data releases pushed AUD into the countercurrency (and mostly bearish) corner last week.
This may change this week as the Reserve Bank of Australia (RBA) publishes its March decision and we see Canada’s latest inflation reports.
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 and Canadian dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
A bit of Aussie strength could draw in AUD/CAD bulls and inspire another upswing from its current levels. As you can see, the pair is finding support from an area of interest near a trend line and 100 SMA.
Bullish candlesticks and a bit of bullish momentum could push AUD/CAD to the R1 (.8930) Pivot Point line or its previous highs near .8950. A technical upswing, combined with a bullish fundamental catalyst, could even extend AUD/CAD’s uptrend to the .9000 psychological mark!
If this week’s events extend last week’s pro-CAD, anti-AUD themes, however, then AUD/CAD may end its weeks-long uptrend.
AUD/CAD may trade below the trend line and revisit previous areas of interest like the S1 (.8852) Pivot Point line or the .8800 psychological area.
Think AUD/CAD can extend its uptrend this week?
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