AUDCAD Sitting on Key LevelPrice action in AUDCAD has piqued my interest here. Following the latest failed attempt at breaking out above .9391/.9474, price has since broken through the rising trend line from YTD lows. For now, we are sitting atop support at the .9262 level. However, with the retail market currently around 65% long, there is plenty of room for a price to break lower here. Bears can look for a break of .9262 targeting a move down to .9178 next, and a retest of the broken bear trend line. This will be a make-or-break zone for the pair so be sure to monitor price action as/if we test that zone.Keep An Eye OnCAD is currently seeing a resurgence amidst higher oil prices and increased hawkishness from the BOC. With the bank having hiked rates by .5%, they’re among the most hawkish of the G10 central banks. Although we have heard a hawkish shift in tone from the RBA this month, the bank is yet to move on rates and lockdowns in China will certainly be impacting trade. Any fresh strength in oil prices will certainly help lift CAD further near term. However, should oil prices suddenly drop, this will be bad news for CAD.
Source: Tickmill
