AUD/CAD is testing a key support zone after days of losses.
Will the bulls step in to extend a longer-term uptrend?
Or will we see a downside breakout in the next trading sessions?
AUD/CAD 4-hour – Chart Faster with TradingView
The Australian dollar has been one of the weaker major currencies this week despite expectations for a hawkish RBA, as U.S.-Iran war jitters and falling gold prices have kept a lid on demand for the commodity-linked currency.
The Canadian dollar has not exactly been a standout performer, but it has managed to hold up better than some of its commodity peers thanks to the recent uptick in oil prices.
With AUD/CAD’s downswing starting to show signs of exhaustion, today’s U.S. NFP release and Canada’s IVEY PMI report could end up shifting the tone and driving the pair’s next move.
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 recently turned lower from the .9750 area and is now trading closer to the .9600 zone. The .9550 – .9600 area is worth watching since it lines up with the 61.8% Fibonacci retracement of February’s upswing, the 4-hour chart’s 200 SMA, and the S2 (.9590) Pivot Point line.
If we see a couple more green candlesticks and sustained trading above .9600, the pair could be setting up for a move back toward the .9700 to .9750 previous highs, and possibly even fresh 2026 highs.
But if AUD/CAD slips back below .9600 or starts trading consistently under its trend line support, then the pair may be looking at a move toward the .9500 inflection point.
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.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on AUD/CAD’s trend pullback setup. But as any pro will tell you, even the cleanest trend pattern can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
In “Unknown Market Wizards,” Jack Schwager interviews successful traders to reveal a common truth: their edge isn’t just knowledge or skills—it’s their psychological resilience and rigid risk control. Whether you’re navigating tariff shocks or safe haven flows into the franc, learn how the “wizards” stay clinical when the rest of the market is emotional.
Master Your Trading Mindset with the Unknown Market Wizards book on Amazon!
Disclosure: We may earn a commission from our partners if you sign up through our links, at no extra cost to you.
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.
