AUD/CAD moves sideways in the short term trying to attract more bulls. The pair has signaled that the downside movement is over, so we cannot exclude potential growth. Though, we have to wait for confirmation before jumping into a long position.
Tomorrow, Canada will publish its inflation data. The CPI is expected to increase by 0.4% in May. Below expectations, economic figures could help AUD/CAD to resume its growth. On Thursday, Australia is to release the Employment Change and the Unemployment Rate figures. The Aussie needs strong support to be able to take the lead here.
AUD/CAD has managed to pass above the immediate downtrend line after failing to close below 0.9347 static support. It’s trapped between the 0.9393 and 0.9347 levels. An upside breakout from this range could signal an upside momentum.
Technically, a new higher high could activate a potential growth towards the 38.2% retracement level. The upside scenario could be invalidated only if the price drops again below the downtrend line and after making a new lower low.
Note: ForexSchoolOnline is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.