AUDCAD (1H) - short term bullish bias
The Australian dollar has found solid support near the daily demand area of 0.8970. The bullish RSI divergence signalled a deceleration in the week-long downtrend. As the price bounced above the psychological level of 0.9000 overnight, we could expect increasing interest to reverse the trade to the long side. For less aggressive traders, a final confirmation would come when the 20-hour moving average crosses above the 30-hour one in a textbook reversal pattern.
Key support: 0.8970
Key resistance: 0.9010
The Australian dollar has found solid support near the daily demand area of 0.8970. The bullish RSI divergence signalled a deceleration in the week-long downtrend. As the price bounced above the psychological level of 0.9000 overnight, we could expect increasing interest to reverse the trade to the long side. For less aggressive traders, a final confirmation would come when the 20-hour moving average crosses above the 30-hour one in a textbook reversal pattern.
Key support: 0.8970
Key resistance: 0.9010