Australian Dollar versus Canadian Dollar has adapted to hawkish sentiments after taking support from 38.2% fibo retracement level i.e 0.9080 and managed to break above 50% fibo retracement level 0.9250. Australian Dollar took advantage of the Canadian Dollars weakness in the market and dragged CAD above the Senkou Span A and Senkou Span B of the ichimoku cloud while also breaking major weekly resistance turned support 0.9250. AUDCAD conquered the exponential moving average 50 in the daily time frame but is struggling against the exponential moving average 200 which is keeping it below 0.9370 weekly resistance. 0.9450 is another major price action and an intraday resistance which needs to be broken for the continuation of bullish trend of higher degree. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The pair struggled to capitalize on the previous day's positive move to the highest level since early July and edged lower on the last trading day of the week. Investors turned cautious amid growing concerns about the risk of stagflation following the release of the dismal US Q3 GDP print on Thursday. This was evident from a softer tone around the equity markets, which drove some haven flows towards the US dollar and acted as a headwind for the perceived riskier aussie. Coming back to the technicals, for the bearish trend to resume, AUDCAD needs to break below 50% fibo again which will drive the market towards 0.9080. On the hawkish side, the pair has already managed to stand above 0.9260, but for further gains, AUDCAD needs to conquer exponential moving average 200 in the daily time frame and 0.9420. 

AUDCAD Adapted Hawkish Sentiments

Oct 29 2021