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AUD/CAD potential long opportunity as key resistance becomes support

By: Invezz
AUD/CAD trading strategy
  • Buy/sell asset: Buy AUD/CAD
  • Entry price: 0.88125
  • Stop loss: 0.87745
  • Leverage: 1x
  • Take profit 1: 0.88500
  • Take profit 2: 0.89100
  • Take profit 3: 0.89800
  • Timeframe: 1-2 weeks
  • Maximum profit: 1.90%
  • Maximum loss: 0.44%
AUD/CAD chart and technical analysis

The price of AUD/CAD made a considerable recovery and broke through a key resistance zone of 0.88125. The price also closed above the 0.88400 resistance level. This could mark the beginning of a bullish trend as the bullish market structure has been broken and the price is making new higher highs.

Currently, the price is looking for a correction and will probably retrace back to the 0.88125 support level which previously was a strong resistance. The price could continue its rally from this price as it is around a major support level and 0.5 Fibonacci level.

Moreover, the price has also formed a bullish head and shoulder pattern which is a bullish reversal pattern and indicates a bullish trend ahead. I am the 0.88125 level for long entries and my target for this trade is the 0.89800 daily resistance zone.

AUD/CAD fundamental analysis

Fundamentally, the price of AUD/CAD is likely to remain stable as there are fewer high-impact news that could have a substantial impact on the price of AUD/CAD.

However, the FOMC and the jobless data on the USD would have some impact on the price of AUD/CAD. If the data is positive for the US dollar the price of AUD/CAD will drop and if the data turns out negative for the US dollar the price of AUD/CAD will climb up.

Australian dollar to Canadian dollar trade idea takeaways
  •  AUD/CAD broke and closed above a key resistance level and previous high recently.
  • The price of AUD/CAD will possibly reach the 0.89800 resistance level in the coming days.
  • Multiple take-profit levels have been added to secure profit along the way.
  • The risk-to-reward ratio on this trade is 1:4.6.
  • The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
  • Good luck!

The post AUD/CAD potential long opportunity as key resistance becomes support appeared first on Invezz

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