The AUD/CAD currency pair has been showing a series of rising peaks and troughs, indicating a short-term uptrend since August 5. With the trend in favor of further upside movement, the pair is likely to continue rising towards its next target, pending a break above the 200-period SMA.
AUD/CAD 4-hour Chart
The 200-period Simple Moving Average (SMA) is currently acting as a resistance level, with the market price below it. A decisive break and close above the 200 SMA would confirm the continuation of the uptrend, marking a significant milestone for the pair.
Resistance at 0.9190 from previous lows is the next target for AUD/CAD, with the Relative Strength Index (RSI) indicating that there is still room for further upside without being overbought.
However, a break below 0.9020 could signal a potential shift in the short-term trend towards a more bearish outlook.
Analysis:
The AUD/CAD currency pair is currently in a short-term uptrend, with momentum favoring further gains. A break above the 200-period SMA would confirm the continuation of this trend, with the next target at 0.9190. Traders should monitor the RSI for overbought conditions and be cautious of a potential trend reversal below 0.9020.