AUD/CAD is back in selloff mode, but losses could be capped as the pair approaches a couple of key inflection points.
Will we finally see a breakout this time?
AUD/CAD: 4-hour
AUD/CAD 4-hour Forex Chart Faster with TradingView
Rising crude oil prices on account of elevated Middle East tensions have been propping the correlated Canadian dollar higher these days.
At the same time, risk-off flows stemming from AI-related tech sector declines are also dragging the higher-yielding Aussie south.
Can AUD/CAD sustain its bearish momentum?
AUD/CAD sold off sharply upon testing R2 (.9880) near the middle of its longer-term range and the .9900 major psychological mark. The pair is closing in on the range support around .9780, possibly gearing for a bounce.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 dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Keep an eye out for additional volatility that could still lead to a dip to S1 (.9760), though support holding could allow the range to stay intact. Long red candlesticks closing below this region, however, could confirm a break lower.
On the other hand, reversal candlesticks around the floor could point to a bounce, possibly lifting AUD/CAD back to the nearby resistance at R1 (.9840) then the top of the range again.
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!
This AUD/CAD update ties rising crude oil prices to the Canadian dollar’s strength, a relationship you may not be fully familiar with. Premium members can read our lesson:
📖 How Oil Moves with USD/CAD, USD/NOK, and CAD/JPY
Reading this helps you understand why rising crude prices tend to support the Loonie, how that oil-CAD link shows up across correlated pairs, and how to judge whether the current bid in CAD is likely to hold or fade as tensions evolve.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where price is testing support or resistance, but the oil and risk flows quietly setting the pair’s direction underneath the chart.
