- AUDCAD prints higher highs and higher lows
- RSI and MACD detect positive momentum
- Break above 0.9260 could signal trend continuation
- Dip below 0.9125 may allow a decent correction
AUDCAD rebounded today from slightly above the support of 0.9270, marked by the low of July 9 and the inside swing high of June 12. Overall, the pair is printing higher highs and higher lows above all three of the plotted exponential moving averages (EMAs) on the daily chart, which paints a positive medium-term picture.
The RSI is lying above 50 and it is pointing up, while the MACD, although it shows some signs of slowing, it remains above both the zero and trigger lines. Both indicators are detecting positive momentum, which means that there is a decent chance for the uptrend to continue for a while longer.
If the bulls are willing to stay in the driver’s seat, they may soon challenge once again the 0.9260 zone, the break of which would confirm a higher high and perhaps pave the way towards the 0.9380 zone, marked by the high of February 2.
On the other hand, a dip below 0.9125 could signal a decent negative correction, perhaps towards the key support area of 0.9045, which acted as a temporary floor between May 20 and 27. That said, the trend would remain positive as the pair would still be trading above the prior upward sloping resistance (now support line) drawn from the high of January 25.
To sum up, AUDCAD continues trading in an uptrend and a decisive break above 0.9260 may confirm a trend continuation.
