- AUDCAD managed to attract some dip-buying near a one-month-old ascending trend-line support.
- The near-term technical set-up favours bullish traders and supports prospects for additional gains.
- A sustained move beyond the 0.9600 handle will further add credence to the constructive outlook.
- Bulls might then aim to surpass July monthly tops and lift the pair further towards the 0.9700 mark.
- Only a sustained breakthrough the trend-line support, near 0.9520 area will negate the bullish bias.
It’s Throwback Thursday and time to revisit our bullish AUDCAD call initiated on July 23. As was expected, the pair showed some resilience below the key 0.9500 psychological mark and attracted some dip-buying near a support marked by a one-month-old ascending trend-line. The subsequent positive move pushed the pair to the 0.9600 handle, which should now act as a key pivotal point for short-term traders.
Meanwhile, RSI (14) on the daily chart has eased from overbought territory, which coupled with bullish MACD supports prospects for additional gains. The positive outlook is further reinforced by the fact that technical indicators on hourly charts have been trending higher. That said, bulls might still wait for some follow-through buying beyond the 0.9600 mark before positioning for any further appreciating move.
The pair might then aim to surpass monthly swing highs, around the 0.9640 region, and head towards reclaiming the 0.9700 round-figure mark.
On the flip side, immediate support is pegged near the 0.9550-40 congestion zone and is followed by the ascending trend-line, currently around the 0.9520 region. Only a convincing breakthrough the mentioned support will negate the bullish bias and hence, should act as a stop-loss level for any near-term bullish positions.