AUD/CAD is about to test a multi-week resistance zone!

Will we see a breakout this week?

Here’s what we’re seeing on the 4-hour time frame:

AUD/CAD: 4-hour

AUD/CAD 4-hour Forex

AUD/CAD 4-hour Forex Chart Faster with TradingView

The Reserve Bank of Australia is widely expected to raise rates again this week, which could support demand for AUD, especially since the Aussie often moves with gold prices. But since another RBA hike is already widely priced in, AUD could be vulnerable to a buy-the-rumor, sell-the-news reaction.

At the same time, the unresolved U.S.-Iran conflict and the Strait of Hormuz remaining closed could keep crude oil prices elevated, giving the oil-linked Canadian dollar a potential boost.

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 rose sharply in early April, then spent the latter part of the month consolidating inside what looks like a descending channel pattern.

This week could get interesting as the pair approaches the channel resistance. A bullish breakout, backed by strong candles and sustained trading above the R1 Pivot Point at .9834, could open the door to a test of the .9900 psychological handle near R2.

On the flip side, a rejection from the resistance zone could drag AUD/CAD back below the Pivot Point at .9778 and the mid channel area.

If sellers stay in control, the pair could revisit S1 at .9722, or even the .9700 psychological level near the 200 SMA.

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 fast approaching a key make-or-break 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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