AUD/CAD has formed higher lows and lower highs inside a symmetrical triangle formation.
Is it due for a breakout soon?
Check out these potential targets on the 4-hour time frame!
AUD/CAD: 4-hour
AUD/CAD 4-hour Forex Chart Faster with TradingView
Resurfacing geopolitical tensions have been weighing on the higher-yielding Aussie while also propping up crude oil and the correlated Loonie these days.
In addition, expectations for a hawkish lean in the upcoming Bank of Canada (BOC) rate statement are providing a tailwind for CAD.
Can these be enough to trigger an AUD/CAD triangle breakdown?
AUD/CAD is currently testing its symmetrical triangle support at S1 (.9790) near the .9800 major psychological level. Long red candlesticks closing below this floor could confirm that bears are taking over, possibly extending the slide to the next downside targets at S2 (.9730) then S3 (.9680).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!
On the other hand, dojis or spinning tops at this support zone suggest that buyers are refusing to back down. A bounce from the triangle bottom could send AUD/CAD back up to the pivot point (.9840) then the triangle top.
Keep an eye out for sustained bullish momentum that could even lead to a break higher and rally to R1 (.9890) then R2 (.9940), especially if the BOC dampens tightening hopes or if crude oil edges significantly lower 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 setup highlights crude oil as a key pressure point for the Canadian dollar, a relationship that may not be immediately obvious to newer traders. Premium members can read our lesson:
📖 How Oil Moves with USD/CAD, USD/NOK, and CAD/JPY
Reading this helps you understand why oil prices affect the Canadian dollar, how Canada’s role as a crude exporter feeds into currency price action, and what to watch when commodity prices shift sharply.
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 the technical setup, but the intermarket forces like crude oil that drive AUD/CAD direction.
