AUD/CAD Rallies

The Australian dollar has been witnessing good vibes recently, especially today when the news turned out to be in favor of the single currency. AUD Consumer Price Index came out better than expected at 1.3% vs forecast of 1.1%. The event played a significant role in every AUD pair, but the most effect was felt in AUD/CAD where the pair went from 1.0196 to 1.0286.

AUD/CAD has been trading above the resistance for the past week and now with the positive data it may try to reach the next level at 1.0500. If the bulls sustain momentum, AUD/CAD may even break the resistance line and go for the multi year high at 1.0800.

On the other hand, bears may try to turn the trend at 1.0350 and depreciate the pair to lower levels. As a start, they need to get back into the downtrend channel and then below the 200SMA. Major bear target is seen at 1.09140.

Chart: AUD/CAD D1