The Canadian Dollar is trading at 1.05 against the Australian Dollar up 0.11% as the second week of November ends. With an open rate at 1.0517 and a previous close at 1.0515, the YTD return is -4.06%. The day range will fluctuate between 1.0500 and 1.0531, the 52-week range will sit between 1.0313 and 1.2386.
AUD has been “struggling to rally against the Canadian Dollar after AUD/CAD pushed above the 0.9396 – 0.9445 inflection zone. Resistance seems to have been established at 0.9516 with the 50-day SMA holding” according to Daily FX.
The pair were seeing bearish trading patterns in September when a ‘Death Cross’ formed after the 20-day SMA crossed under the latter resistance level. Mid-October CAD/AUD continued bearish themes throughout the 0.9272 support level before bouncing back which has carried throughout November.
There is now a falling wedge pattern on the horizon as the AUD/CAD currency pair is likely to reverse south from the upper pattern line at the 0.9470 marks and focus on the lower pattern line at 0.9200. If this pattern stabilizes then an inflection point could be reached and a reversal north will follow.
“Meanwhile the currency pair could gain support from the 55-, 100- and 200- period moving averages in the 0.9370/0.9435 range” meaning a breakout north may be insights and the pair could move towards the 0.9650 level.
The falling wedge pattern is marked by a horizontal level of support to go along with a series of bearish trends, since the increase in support levels that began in October, traders have picked up bullish tendencies which may lead to CAD strengthening in the coming weeks.
By Surina Nath