AUD/CAD buy signal: riding the emerging bullish trend

AUD/CAD has been in a bearish trend for almost a year. However, the market structure has turned bullish after the price made continuous higher highs. The price broke above all major resistance levels and gained almost 4% since last month.

This week the price broke above the previous high of 0.88321 and is aiming for the 0.89779 resistance level in the coming days.

I am expecting the price will retrace back to the 0.87740 support level and 0.618 Fibonacci level before going for new highs. I considering this level for buy entry and the potential target for this trade is the 0.89779 resistance level.

Fundamentally, the price will remain volatile throughout this week as there is impact news on almost all major currencies.

The most important fundamental event this week is nonfarm payroll(NFP). If the data turns out positive for the US dollar it will weaken the Australian dollar and the price of the AUD/CAD pair will go down. On the contrary, if the data turns out negative for the US dollar it will strengthen the Australian dollar and the price of the AUD/CAD will go up.

• The price of AUD/CAD is recovering from almost a year-long bearish trend.
• I am expecting the price will rally to the 0.89779 resistance level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:5.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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