Short-term technical analysis (1 to 3 weeks)(click to enlarge chart)
Time-stamped: 8 Aug 2022 at 5:00pm SGT
Source: CMC Markets
Key Levels (1-3 weeks – AUD/CAD)
Intermediate support: 0.8940
Pivot (key support): 0.8855
Resistances: 0.9025, 0.9125/9170 & 0.9300/9330
Next support: 0.8745
Directional Bias (1-3 weeks – AUD/CAD)
The price actions of the AUD/CAD cross pair have staged a bullish breakout from its former medium-term descending trendline that has capped prior up moves since the 5 April 2022 high of 0.95160.
Bullish bias above the 0.8855 key medium-term pivotal support for a further potential push-up to retest the recent 2 August 2022 swing high area of 0.9025. A break above it reinforces a medium-term (multi-week) bullish impulsive sequence towards the next resistance at 0.9215/9170 in the first step.
On the other hand, a break with a 4-hour close below 0.8855 negates the bullish tone for a slide back to retest the major support of 0.8745.
Key elements (AUD/CAD)
- The price actions of AUD/CAD have started to oscillate within a short-term ascending channel since the 13 July 2022 low of 0.8735.
- The upper boundary of the short-term ascending channel will act as resistance at 0.9125/9170 in the coming weeks, which also confluences with the range top from 27 May/3 June/17 June 2022 and a cluster of Fibonacci retracement/expansion levels.
- Short-term upside momentum has turned positive as indicated by the 4-hour RSI oscillator, which has managed to stage a bounce right above its corresponding critical ascending support today, 8 August. It has not reached an extreme overbought level.