- The AUD/CAD is extending its sequence of ascending peaks and valleys in a short-term uptrend.
- Given the trend bias to extend, the pair is likely to rise towards the next target subject to a break above the 200-period SMA.
The AUD/CAD has established a sequence of highs since finding a bottom and reversing course on August 5.
It is probably now in a short-term uptrend which, since “the trend is your friend”, is more likely to continue going up than not.
AUD/CAD 4-hour chart
The 200-period simple moving average (SMA) (green) is above the current market level and appears to be acting as a resistance level. A break and close above the 200-period SMA would provide confirmation of a continuation of the short-term uptrend. Such a break would also constitute an important milestone surpassed, as it is the last significant SMA on the way up.
The next upside target is resistance at 0.9190 from the inherited lows.
The RSI momentum indicator has yet to rise into overbought territory, suggesting that the market is not at risk of a pullback.
A break below 0.9020 would put the short-term uptrend into question and could signal a shift to a more bearish environment.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
