AUD/CAD bounced off its range resistance earlier this week and is now setting its sights back on the floor.
Will support still hold this time?
Check out these potential inflection points on the 4-hour time frame!
AUD/CAD: 4-hour
AUD/CAD 4-hour Forex Chart Faster with TradingView
Weaker-than-expected Australian CPI data appears to have weighed heavily on the Aussie this week, while the Canadian dollar got a decent boost from upbeat inflation figures.
To top it off, Australia’s jobs report reflected underlying weak spots, further dampening RBA tightening expectations in the near term.
Is AUD/CAD headed for more downside?
The pair is approaching its range support at the .9750 minor psychological mark, which also happens to be near S3 (.9760).Remember that directional bias and volatility in AUD/CAD are often driven by market sentiment. If you haven’t done your homework on the Australian dollar and the Canadian dollar, it’s time to check the economic calendar and stay updated on daily fundamental news.
Keep your eyes peeled for reversal candlesticks or signs of hesitation at this area, as a bounce could still take AUD/CAD back up to nearby resistance levels, including S2 (.9800) and S1 (.9860). Sustained upside momentum could lift the pair all the way up to the range resistance near the .9950 minor psychological mark.
Meanwhile, long red candlesticks piercing through the range support could set off a slide that’s the same height as the chart formation or 200 pips, though price could also find buyers at S4 (.9720) and S5 (.9680) should profit-taking come in play ahead of the weekend.
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.
AUD/CAD is trading within a defined range, and if you’re not sure how to read that kind of price action, our lesson has you covered. Premium members can read our lesson:
📖 What is a Range-Bound Market?
Reading this helps you understand how to identify a ranging environment, which tools confirm range conditions, and how to spot the best currency pairs for range trading.
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 bouncing, but the technical conditions that define whether a range is likely to hold or break.
