AUDCAD – 4H Timeframe (H4) Technical & Fundamental Analysis
The Australian Dollar currently holds a slight edge over the Canadian Dollar as improving economic sentiment in China and stable commodity demand lend strength to AUD, while expectations of earlier rate cuts by the Bank of Canada weigh on CAD.
Looking at the AUDCAD 4-hour chart, the pair has been trading in a range below the minor resistance at 0.89500. A trendline connecting three highs has now been broken, suggesting early signs of bullish pressure. However, confirmation is still needed before a directional bias is confirmed.
We are watching for two key confirmations:
A break and close above 0.89500, accompanied by signs of buyer accumulation, could signal a Change of Character (CHOCH) and shift market structure bullish.
A liquidity sweep or stop-hunt below the resistance could trap early buyers before a stronger breakout. If price then reclaims and closes above the 0.89500 level again, it would confirm bullish intent.
A potential area of interest lies around 0.89570 (possible breakout point), with risk managed below 0.89040 if liquidity forms.
The longer-term target is the next major resistance zone near 0.90650.
This setup reflects evolving bullish structure and market positioning, supported by improving AUD fundamentals.
Fundamentals Supporting AUD:
-China Economic Recovery Signs: Recent Chinese data shows early signs of stabilization, which supports AUD due to Australia’s strong trade ties with China.
-Stable Commodity Demand: Iron ore and other exports remain in steady demand, reinforcing the AUD’s fundamental base.
-RBA Policy Stability: The Reserve Bank of Australia is currently neutral on rates, offering more support compared to dovish central banks.
Fundamentals Weakening CAD:
-BoC Dovish Outlook: Markets expect the Bank of Canada to begin cutting interest rates earlier than other central banks, which weighs on CAD.
-Flat Oil Prices: Oil, a key Canadian export, has shown lackluster performance recently, limiting CAD’s upside.
-Mixed Canadian Data: Economic indicators like employment and GDP have been inconsistent, raising caution among investors.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
The Australian Dollar currently holds a slight edge over the Canadian Dollar as improving economic sentiment in China and stable commodity demand lend strength to AUD, while expectations of earlier rate cuts by the Bank of Canada weigh on CAD.
Looking at the AUDCAD 4-hour chart, the pair has been trading in a range below the minor resistance at 0.89500. A trendline connecting three highs has now been broken, suggesting early signs of bullish pressure. However, confirmation is still needed before a directional bias is confirmed.
We are watching for two key confirmations:
A break and close above 0.89500, accompanied by signs of buyer accumulation, could signal a Change of Character (CHOCH) and shift market structure bullish.
A liquidity sweep or stop-hunt below the resistance could trap early buyers before a stronger breakout. If price then reclaims and closes above the 0.89500 level again, it would confirm bullish intent.
A potential area of interest lies around 0.89570 (possible breakout point), with risk managed below 0.89040 if liquidity forms.
The longer-term target is the next major resistance zone near 0.90650.
This setup reflects evolving bullish structure and market positioning, supported by improving AUD fundamentals.
Fundamentals Supporting AUD:
-China Economic Recovery Signs: Recent Chinese data shows early signs of stabilization, which supports AUD due to Australia’s strong trade ties with China.
-Stable Commodity Demand: Iron ore and other exports remain in steady demand, reinforcing the AUD’s fundamental base.
-RBA Policy Stability: The Reserve Bank of Australia is currently neutral on rates, offering more support compared to dovish central banks.
Fundamentals Weakening CAD:
-BoC Dovish Outlook: Markets expect the Bank of Canada to begin cutting interest rates earlier than other central banks, which weighs on CAD.
-Flat Oil Prices: Oil, a key Canadian export, has shown lackluster performance recently, limiting CAD’s upside.
-Mixed Canadian Data: Economic indicators like employment and GDP have been inconsistent, raising caution among investors.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.