AUDCAD continues inching higher, well supported above the regression channel that started in Oct ’19.
Breaking out of a symmetrical consolidation only recently, bulls could strike the 0.9445 resistance out next.
Despite trading above TS1 at the time of writing, prices could slide lower in the short-term before registering fresh highs. There are two underpinned lows down below: one at TS1 and one lower at TS2.
Since the RSI (14) trades near 58, bears might not have settled just yet. This contributes to our short-term expectations. With positive momentum continuing to support AUD above the 50 neutrality barrier, the short-term bias hints at a fall.
A decline to the median regression channel in the below chart will ease downward pressure. It will likely act as a retest region for bulls.
There are chances of a close below TS2. This will be an indication of further weakness towards the lower regression channel near 0.9250.
Remaining above TS1, however, will increase expectations of broader upward pressure towards the upper regression channel. A close above the 150% Fibonacci extension can be expected to increase the bullish expectations.
The resistance at the 0.9461 Fibonacci extension will determine the short-term direction should the previous high at 0.9445 break. The RSI (14) points at an upside move, which suggests that the said level could be revisited soon.