The foreign exchange market is a dynamic and ever-changing landscape, influenced by various economic factors, geopolitical events, and investor sentiment. Traders constantly analyse these factors to make informed decisions on which currencies to buy or sell. Currently, traders are expressing a bearish outlook on the Australian dollar (AUD) while exhibiting a bullish sentiment towards the Canadian dollar (CAD).

The AUDCAD Performance

(UPDATE) - Is AUDCAD bearish continuation on the cards?

Traders anticipate a continuation to the downside on AUDCAD as the market has retraced

back to the resistance zone around 0.89479. The Fibonacci retracement tool indicates that the market has retraced close to the 61.8 level and this adds to the confluence and could increase the probability of the market resuming the trend. As such, traders anticipate the market to drop down to the support zone around 0.87356.

The AUDUSD Performance

AUDUSD is trading in the supply zone.

AUDUSD has retraced back to the descending trendline as well as the supply zone. The recent price action suggests that the market might be preparing to continue the trend to the downside as traders anticipate the resistance trendline to hold prices and sellers to step in around the supply zone. This price action is also in confluence with the 61.8 level of the Fibonacci retracement tool. As such, traders anticipate a drop back to the support zone around 0.65598.

The CADCHF Performance

CADCHF continues to the upside.

CADCHF recently broke above the descending channel and is currently trading at the previous high. Traders are looking at a few possibilities of how the price could react to the recent structure; a retracement could create an inverse head and shoulders and provide confluence to the upside or the market could continue rallying to the upside however, according to the recent price action traders are bullish and anticipate a rally to the resistance zone around 0.69369.

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Final Thoughts On Today’s Analysis 

The foreign exchange market is a dynamic and ever-changing landscape, influenced by various economic factors, geopolitical events, and investor sentiment. Traders constantly analyse these factors to make informed decisions on which currencies to buy or sell. 

Currently, traders are expressing a bearish outlook on the Australian dollar (AUD) while exhibiting a bullish sentiment towards the Canadian dollar (CAD). Follow our YouTube channel to learn more about our product offering and learn more about TD Markets Academy.