AUD/CAD has straddled a 6.8% price corridor since the start of the year. Advancing beyond Kijun resistance at 0.9283 should encourage a positive MACD signal turn underpinning the cross, Benjamin Wong, Strategist at DBS Bank reports.

Going long on base building

“The first resistance obstacle at 0.9168 has been cleared together with the 100-day moving average (DMA)/200-DMA resistance axis around 0.9207. The Kijun resistance at 0.9283 is next on the table. The standard deviation indicator at midline which allows more upside to unravel once the MACD (moving average convergence divergence) signal cuts to affirm.”

“AUD/CAD has edged higher from a recent 0.8909 low to top at 0.9516 but its retracement stood well at a 76.4% Fibonacci that provided a recent 0.9049 low. This has provided the buffer grounds for the current rally developing; base building is here.”