In short term we see the strengthening of the Australian currency and the weakening of the Canadian dollar, which occurred after the decision of the Bank of Canada on interest rates and the conference of chairman – Stephen Poloza and yesterday’s remarks made by the administration of new US President Donald Trump, whose representative suggested the possibility of renegotiating each point of the North American Free Trade Agreement (NAFTA). This combination of strong and weak currency may lead to seek opportunities to purchase AUDCAD currency pair.
As you can see on chart H4, after reflection from the 20-period SMA has been broken first resistance level at 0.9868 and then at 0.9917. The consequence of these events was a movement upward, which led today the price at around resistance key level at 1.0600.
Joining now to increases would not be reasonable, especially considering the fact that we are just below resistance. However, if there is a correction of recent increases, we will look for signals of its completion, in order to take advantage of growth momentum prevailing in the AUDCAD.
At the moment it is difficult to predict if correction will happen and when eventually will end. However, if in fact it occurs, look for signs of its completion in the range of 33-66% Fibo abolition of the last impulse of growth.
