AUD/CAD recently busted through the ceiling around the .9750 minor psychological mark but seems to be stalling on its rally.
Can a pullback gather more bullish energy?
Check out these retracement levels on the 4-hour time frame.
AUD/CAD: 4-hour
AUD/CAD 4-hour Forex Chart Faster with TradingView
Falling crude oil prices on account of the war premium unwinding has been weighing on the correlated Canadian dollar these days.
At the same time, relatively strong Australian fundamentals continue to keep hawkish RBA expectations well-anchored, providing more support for the Aussie while risk appetite is supported by “cautious optimism” for US-Iran peace talks.
Can AUD/CAD sustain its climb?
AUD/CAD hit a ceiling around R1 (.9860) on its latest advance, putting it back in correction mode to the area of interest or former resistance zone that could now hold as a floor.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!
This happens to be in line with the 38.2% Fibonacci retracement level and pivot point (.9720) right around the .9750 minor psychological mark. A larger correction could reach the 50% Fib closer to the .9700 handle or the 61.8% level near .9650, which could be the line in the sand for a bullish pullback.
Look out for reversal candlesticks at any of these potential support levels, a bounce could take AUD/CAD back up to the swing high or the next upside target at R2 (.9930).
On the other hand, long red candlesticks falling below the Fib levels could suggest that Aussie bears or Loonie bulls are taking over, possibly dragging AUD/CAD down to the previous range support near S2 (.9510).
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: Clean Charts Mean Nothing Without Clean Execution.
AUD/CAD is pulling back to a resistance-turned-support zone. But spotting the setup is only half the job; consistently executing it without hesitation is what separates amateurs from pros.
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