AUD/CAD Weekly outlook – 19 March – 23 March
Despite an initial loss early in the week, the Aussie found strength against the Canadian Dollar as the trading week drew to an end. With the bears losing the battle against the bulls, the weekly charts closed the week with a strong bullish pin bar suggesting a continuation of bullish momentum may be seen in the coming week.
The weekly pin was supported by a rejection of the 61.8% Fibonacci retracement level on the markets most recent and relevant upswing.
Price action signals towards further gains for the pair, however traders should be cautious of the resistance area at 1.0500, which in the past has proven a difficult obstacle for the market to break through.
Last weeks candle closed at the resistance level which may hold of any further bullish moves.
The markets strong price action pattern and overall uptrend since 2008, suggests the pair may continue to rise for the foreseeable future.
We’ll be looking to long the pair with initial targets in mind at 1.0750 (the next relevant area of resistance). Our entry will be a 50% retracement of last week’s pin with our stops being just below last week’s low giving a good R:R trade and keeping in mind the strong resistance at 1.0500.
