AUD/CAD has hit the firm resistance level of 0.87467 on the one-hour chart during the mid-day European trading session. The moving averages crossover also supports the intensifying bullish bias in the market as the 50-EMA is sloping positively above the 200-EMA.
Still, bulls need to reinforce upside momentum to find a way above the 0.87467 hurdle to keep the rally alive. If that happens, the price will continue to move up towards the immediate resistance of 0.87584. A sustained break higher can pave the way to reconquer the 0.87710 mark, which lines up with the 161.8% Fibonacci projection of the previous downswing from 0.87485 to 0.87121. With accelerating bullish sentiment this level can be broken, sending the price towards one-week highs around the 0.87849 barrier.
Otherwise, should sellers defend the market top at 0.87485, the price is likely to retest the uptrend line in the vicinity of the 50-EMA, while the 0.87121 last market bottom is expected to support AUD/CAD against further declines.
However, Short-term momentum oscillators are exhibiting a sign of buyers’ exhaustion. RSI, momentum and MACD bars have recorded a divergence between the oscillator and the price, suggesting that the uptrend is getting out of steam. Given that, further confirmation is needed to evidence a bullish run.
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