On the four-hour chart, the AUD/CAD pair has been on traction to form a bullish reversal, after making a higher bottom at 0.8991. This short-term descending channel can depict an upside breakout through its upper line which has been followed by a pullback to the broken line as well as the 50-EMA. Seemingly buyers are reversing back to the upside, specially following a decisive break above the swing top at 0.9076 and the 200-EMA. Currently the 127.2% Fibonacci level is holding resistance. If bulls manage to gain further ground above this key level at 0.9099 the price would propel for the 0.9128 in lines with the 161.8% Fibonacci level. Overcoming this barrier could pave the way towards 0.9161 in the meantime.
Otherwise, intensifying selling pressure might send the pair to retest the 200-EMA. Further decline could charge to following support around 50-EMA. However, bears need to run the market below the swing bottom of 0.8991 to resume the downtrend.
Oscillators endorsing bullish bias. RSI is running upward in buying territory. Momentum is also hovering above the 100-threshold. The MACD bars are sustaining their gradual climb in positive region above the signal line.
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