AUD/CAD traded slightly higher on Wednesday, after hitting support at around 0.9345 on Tuesday. The rate is trading above a tentative upside support line drawn from the low of June 3rd, and is now testing the key resistance of 0.9390, marked by the highs of June 7th, 11th, and 14th. With that in mind, we would like to wait for a clear close above that barrier before we get confident on decent upside extensions.
A clear close above that hurdle will confirm a forthcoming higher high and may pave the way towards the peaks of May 14th and 17th, at around 0.9430. If the bulls are not willing to stop there, then the advance may continue towards the 0.9470 or 0.9500 zones, marked by the inside swing lows of May 10th and 11th, and the high of May 11th, respectively. Another break above 0.9500 could see scope for extensions towards the 0.9555 obstacle, defined as a resistance by the high of May 10th.
Shifting attention to our short-term oscillators, we see that the RSI runs above its trigger line, pointing up, while the MACD lies fractionally above both its zero and trigger lines, pointing slightly up as well. Both indicators suggest that the rate could start gathering upside speed soon, which supports the notion for further advances. However, we insist to wait for a clear break above 0.9390 before getting confident on that front.
On the downside, a dip below 0.9345 would also take the rate below the aforementioned upside line and may encourage the bears to push the action towards the 0.9300 barrier, marked by the low of May 28th, or the 0.9255 zone, marked by the low of June 3rd. If neither territory is able to halt the decline, then a break lower would confirm a forthcoming lower low on the daily chart and may set the stage for the 0.9200 area, defined as a support by the inside swing high of May 26th, 2020.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.05% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.