AUDCAD holds in a continuous ascending channel since the back end of 2020, hitting yearly highs in the process.
After the last downward move to the lower channel in December, prices have propelled and broken out of the upper channel.
However, the long-term bearish divergence noted on the momentum indicator could see a shift in the trend. Prices now look towards the median regression, which is a confluence of the Ichimoku cloud.
Should prices touch the said level, we could see a move back to the lower channel around the 0.97 level.
An intra-day perspective hints at the possibility of a slight upturn for the currency pair. Currently, prices have seen a bounce at the golden ratio of the 0.9774/0.9900 upside Fibonacci leg.
A small bullish divergence signals some strength for the pair, as prices broke through the 50%, leading to the lower border of the Ichimoku cloud.
The next target is the 38.2%, signaling cloud engulfment and a move up to recent highs towards 0.99.