- AUD/CAD extends its sequence of rising peaks and troughs in a short-term uptrend.
- Given the bias for trends to extend the pair will likely rise towards the next target subject to a break above the 200-period SMA.
AUD/CAD has established a sequence of rising peaks and troughs since it found a floor and reversed course on August 5.
It is now probably in a short-term uptrend which given “the trend is your friend” is more likely to continue rising than not.
AUD/CAD 4-hour Chart
The 200-period Simple Moving Average (green) lies above the current market level and appears to be acting as a resistance level. A break and close above the 200 SMA would provide confirmation of a continuation of the short-term uptrend. Such a break would also constitute an important milestone overcome, as it is the last significant SMA on the way up.
The next target higher is resistance at 0.9190 from legacy lows.
The Relative Strength Index (RSI) momentum indicator has not risen into overbought territory yet suggesting the market is not at risk of a pull back.
A break below 0.9020 would bring into doubt the short-term uptrend and might indicate a change to a more bearish environment.
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