News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Nasdaq 100, Hang Seng, ASX 200 Outlook: Tech Earnings in Focus as US Stocks Hit Records https://www.dailyfx.com/forex/market_alert/2021/04/19/Nasdaq-100-Hang-Seng-ASX-200-Outlook-Tech-Earnings-in-Focus-as-US-Stocks-Hit-Records.html https://t.co/hrSux6PveT
  • #Bitcoin Tumbles Amid Xinjiang Blackout, Possible US Treasury Investigation - https://www.dailyfx.com/forex/market_alert/2021/04/19/Bitcoin-Tumbles-Amid-Xinjiang-Blackout-Possible-US-Treasury-Investigation.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $BTC https://t.co/zs4eQVrKEP
  • 🇯🇵 Balance of Trade (MAR) Actual: ¥663.7B Expected: ¥490B Previous: ¥215.9B https://www.dailyfx.com/economic-calendar#2021-04-18
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8yG5lv https://t.co/j7No5uPhYF
  • 9 out of 11 S&P 500 sectors ended higher, with 70.9% of the index’s constituents closing in the green. Materials (+1.18%), utilities (+0.81%) and consumer discretionary (+0.78%) were among the best performers, while energy (-0.90%) and information technology (-0.03%) lagged. https://t.co/2qbzKRyx2B
  • 9 out of 11 S&P 500 sectors ended higher, with 70.9% of the index’s constituents closing in the green. Materials (+1.18%), utilities (+0.81%) and consumer discretionary (+0.78%) were among the best performers, while energy (-0.90%) and information technology (-0.03%) lagged. https://t.co/uAt7OhZvYM
  • There's no question about it, trading brings about much emotion. Knowing how to control emotions while trading can prove to be the difference between success and failure. Learn more about managing emotion in trading here: https://t.co/FC7CHp2y70 https://t.co/UvcEzMKGmI
  • What are some key takeaways for trading gold? Get your free insight here: https://t.co/lnxaQOsgid https://t.co/GOBTKkCEKh
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET (12:30GMT) on DailyFX - https://t.co/lxd5fZ5LG7 Mid-Weekly Technical Update on Wednesday at 9:30am ET (13:30GMT) with IG - https://t.co/8SFBJxwo30
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here: https://t.co/1ZR5OCfY3u https://t.co/NMiJrp6wmP
AUD/CAD Forecast: Price May Reverse Lower

AUD/CAD Forecast: Price May Reverse Lower

Mahmoud Alkudsi, Analyst

Aussie Dollar vs Canadian Dollar Technical Forecast

  • Bull’s momentum has eased, but the bias higher
  • AUD vs CAD price chart exposes a possible reversal on the horizon

A Multi-Month High

Last week, AUD/CAD hit a near 20-month high at 0.9640. However, the price retreated after as some bulls seemed to cut back. Ultimately, a weekly candlestick closed modestly in the green with a 0.4% gain.

Alongside that, the Relative Strength Index (RSI) abandoned overbought territory (70) and fell to 60 highlighting that bulls were losing momentum.

AUD/CAD DAILY PRICE CHART (NoV 25, 2018 – July 31, 2020) Zoomed Out

AUDCAD daily price chart 31-07-20 Zoomed out
Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

AUD/CAD DAILY PRICE CHART (June 4 – July 31, 2020) Zoomed IN

AUDCAD daily price chart 31-07-20 Zoomed in

Yesterday, AUD/CAD climbed to the current 0.9633- 0.9740 trading zone indicating that bulls were still in charge.

However, it’s important to note the price and RSI divergence as the former created a higher high, while the latter created a lower high, signalling a possible reversal of the upward trend.

A daily close below the low end of the current trading zone could reverse the price’s direction towards the weekly support level at 0.9444 ( July 2019 high).

On the other hand, a daily close above the high end of the zone could encourage bulls to extend the rally towards the monthly resistance level at 0.9917 (April 2017 low) .

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

AUD/CAD Four-Hour PRICE CHART (JUNE 22 – JULY 31, 2020)

AUDCAD four hour price chart 31-07-20

On July 24, AUD/CAD rebounded from the lower bound support line of the bullish channel originated from the June 21 low at 0.9268 then rallied after and broke above the higher bound resistance line of the same channel reflecting a stronger upward momentum.

To conclude, while the bullish bias is still in place the price/RSI divergence provides a good base of a possible reversal. Additionally, a break below the higher bound support of the aforementioned bullish channel highlights a weaker bullish sentiment.

Therefore, a break below 0.9628 could send AUD/CAD towards 0.9578, while a break above 0.9786 may trigger a rally towards 0.9890. As such, the support and resistance levels underscored on the four-hour chart should be kept in focus.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES