AUD/CAD has taken a chill pill from its downtrend and it looks like it’s still waiting for its next direction!
Think this 4-hour range resistance will hold for another day?
Take a look!
In case you missed it, AUD/CAD started a downtrend in mid-January and is now trading about 500 pips from its 2023 highs.
Fast forward to today and AUD/CAD looks like it’s trading in a range.
For one thing, the simple moving averages (SMAs) are moving in a flat direction instead of tilting downwards.
For now, AUD/CAD is consolidating just under the .9100 psychological handle that also marks the top of a 150-pip range on the 4-hour time frame.
Aside from the rejection at .9100, Stochastic is also egging on AUD bears with its “overbought” signal.
Range playas who are convinced that AUD/CAD will hold its range can sell at current levels and aim for the .9025 mid-range or .8950 range support zones.
Think AUD/CAD trading above the 100 and 200 SMA means that the pair is ready to break to the upside?
You can also wait for a clear breakout above the .9100 resistance and trade a possible trip to the .9170 or .9215 inflection points.
Whichever direction you choose to trade, make sure to practice your best risk management moves so you get to trade for another day!