AUD/CAD is having a nice run to the upside, which forced the pair to break above its medium-term downside resistance line drawn from the high of the 25th of July, and also move above the key resistance level of 0.9365, marked by the high of the 19th of October. Certainly, we can see that the bulls are feeling quite comfortable right now but looking at the daily chart of AUD/CAD, the upside could be limited, as the pair is heading towards a test of the longer-term downside resistance taken from the peak of the 14th of March.
From the short-term perspective, we could see AUD/CAD traveling towards the next potential area of resistance at 0.9475, marked near the high of the 27th of September. This is where the pair could also test the above-mentioned long-term downside line, which if not broken, could be a good signal for the bears to get invited again. If so, AUD/JPY could slide again, and we could be aiming for a test of the recently broken resistance at 0.9365, which now could become an important support. If that support does not hold, the selling-pressure could easily drag the pair down for a test of the short-term tentative upside support line, taken from the lowest point of October.
Looking at our oscillators, the RSI stands above 50 and still points to the upside. The MACD has just entered into the positive zone, it is above the trigger line and also points to the upside, meaning that there could more moves higher to come, at least in the near-term.
Alternatively, if the aforementioned long-term downside resistance line breaks and AUD/CAD moves above the 0.9520 resistance barrier, marked by the high of the 6th of September, this could open the path towards the next potential area of resistance at 0.9615. This area held the rate from moving higher on the 21st of August, but if the buying-power persists, then the pair could move above that resistance. AUD/CAD could aim for a possible test of the 0.9710 level, marked by the 8th of August.
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