After declines from 20 March this year, since last Wednesday AUDCAD currency pair moves calmly north. As a result of these increases, market reached a significant resistance level at 1.0125, coinciding with the 50% correction of the Fibonacci correction from earlier falls. In the vicinity of this level already on Tuesday and Wednesday appeared first supply reaction. These falls have not lasted too long and now we are testing the zone again. If this time supply reaction occurs again we might expect declines.

AUDCAD H1

Looking at the daily chart we will note that current level also constituted a significant resistance in the past. The bearish scenario assuming its rejection also supports current situation on the Stochasstic oscillator, where we observe divergence.

AUDCAD Daily

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