The Australian dollar saw a slight increase in value earlier today (Wednesday), but it's struggling to break past the 0.69 level. This number is important because it's a psychological marker and has previously caused some volatility. If the price falls below 0.6850, the market could drop further.
Investors are closely watching the US Federal Reserve's recent decision to cut interest rates by 50 basis points, as well as global and Asian economic growth, which heavily impacts Australia. If global risk appetite decreases, the US dollar may strengthen, pushing the Aussie dollar lower, potentially down to the 50-day or 200-day moving averages, around 0.6650.
On the flip side, if the Australian dollar climbs above 0.695, it could reach 0.70, making it more appealing to hold. Currently, the market is figuring out whether this is a long-term bottom or just another pause before falling further. Keep in mind, a risk-off move could cause a sharp drop, so trade carefully and manage your risks wisely.
AUDCAD – H1 Timeframe
The 1-hour timeframe chart of AUDCAD has shown price break below the previously highlighted low. Following that sweep;
- Price has reacted bearish from the Fair Value Gap with a massive momentum, leading me to anticipate a retest of the highlighted supply zone.
- The rejection from the supply zone would serve as a trigger for further bearish momentum.
- The trendline support is the primary target.
Analyst’s Expectations:
Direction: Bearish
Target: 1.92488
Invalidation: 1.93198
CONCLUSION
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