AUD/CAD is sitting pretty on a key support level that has been holding all month.
The Reserve Bank of Australia (RBA) just hiked interest rates again, though the oil-related Loonie is also drawing support from the energy commodity.
Here are the next inflection points to watch while bulls and bears battle it out.
AUD/CAD: 1-hour
AUD/CAD 1-hour Forex Chart Faster With TradingView
AUD/CAD has been bouncing off the .9900 major psychological floor for the past few weeks, as hawkish RBA expectations appear to be keeping the Aussie supported.
Elevated geopolitical tensions, however, have also been keeping global oil supply concerns in play and lifting the correlated Canadian dollar.
Is this pair about to break lower soon?
Aussie bulls still seem to be defending the floor after the RBA decision, even when policymakers adopted a more cautious tone about future hikes.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!
Look out for additional bullish momentum on the bounce, potentially lifting AUD/CAD to next upside targets at the pivot point (.9950), then the monthly highs closer to R1 (1.0000) or parity.
Fresh escalation headlines or additional Saudi supply concerns, however, could pull the rug from under the pair. Watch out for long red candlesticks closing below S1 (.9890) that could clear the way for a move down to S2 (.9840), especially if crude oil prices keep rallying.
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.
AUD/CAD bulls are defending support after the RBA decision, but if you’re not sure how a “dovish hike” differs from a hawkish one, the setup can be tricky to read. Premium members can read our lesson:
📖 Hawkish vs. Dovish: How to Read Central Bank Language
Reading this helps you understand what hawkish and dovish actually mean, how to tell where the RBA sits on the policy spectrum, and why forward guidance can move the Aussie more than the rate hike itself.
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 AUD/CAD’s support levels sit, but the central bank signals that decide whether they hold or hike next time.
