This Aussie pair is cruising higher with rising lows and highs connected by an ascending channel.
Resistance is holding so far, possibly spurring a pullback to nearby support zones.
Can these Fibonacci retracement levels attract more buyers?
AUD/CAD 4-hour Forex Chart by TradingView
Aussie bulls were off to a running start this year while the oil-related Loonie has been on wobbly ground, allowing AUD/CAD to bust through the .96200 major psychological ceiling early on.
Price is stalling at the top of a newly-forming channel, though, so a correction may be in order.
Or are buyers eager to keep the uptrend going soon?
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!
AUD/CAD appears to be finding some support at the 38.2% Fib near the pivot point level (.9270) and could already test the latest highs close to the .9350 minor psychological mark.
A larger correction could still reach the 50% Fib close to the .9250 level or the 61.8% retracement near the channel bottom and area of interest, as well as the .9200 major psychological support and 100 SMA dynamic inflection point.
Just be sure to keep your eyes peeled for reversal candlesticks suggesting a bounce at any of these regions, as a continuation of the climb could eventually lift AUD/CAD to fresh highs near R1 (.9370).
Better keep tabs on crude oil price movements that could push the commodity-driven Canadian dollar around, too.
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.
