AUDCAD likely to retain bullish tone and trade higher intraday

The Australian dollar is trading higher against most of the other currencies after the Australian consumer price index data, which was released during the previous Asian session. The AUDCAD pair pushed higher and broke an important resistance area at 1.011. I think the pair might continue trading higher in the coming sessions, and we should be looking for buying opportunities in the short term.

The AUDCAD pair is trading in a monster ascending channel, and has recently breached the 1.011 resistance zone. The broken resistance area is likely to act as a support for the pair in the short term. There is also a bullish trend line forming on the hourly chart inside the channel. So, if the pair corrects lower from the current levels, and trades closer to the mentioned level, then we can jump into a buy trade.

Initial target should be around the 1.0150 level, and final target could be around the 1.0180 level. Stop should be below the 1.0080 level.

Reviewing yesterday’s events and trades
Yesterday, the US consumer price index data was published, which registered a reading of 0.3% as expected. The US existing home sales data was also published, which registered an impressive increase. Overall, the US dollar was seen trading higher against all major currencies. The biggest looser of the day was the EURUSD pair, which traded lower and broke the 1.3480 support level. The AUDUSD pair on the other hand is trading higher post the Australian CPI release during the Asian session.

Fundamental Outlook for the day
Today, there is no major economic release scheduled in the US. So, the market is likely to remain quiet. However, there are a few risk events lined up later during the Asian session. The RBNZ will be announcing interest rates, which is likely to affect the NZDUSD pair. Moreover, the Japanese trade balance data and Chinese HSBC manufacturing PMI will be released, which can cause some swing moves in the market.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURJPY, GBPUSD, NZDUSD, AUDUSD and USDCAD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!