From January 12 till January 18, 2026, the outlook for AUDCAD leans firmly bullish, supported by a strong technical footprint and shifting interest rate narratives.
In fact, indicators paint a cohesive and compelling picture. The entire spectrum of moving averages—from the MA50 to the MA200—points to an uptrend, which is further confirmed by the RSI holding firm at 59.770. Together, these signals form a clear "Strong Buy" recommendation, suggesting that the current momentum has a solid foundation. In the medium term, this sets the stage for a test of nearby resistance levels.
Delving deeper into the pair, the Aussie benefits from two primary tailwinds:
Hawkish RBA outlook. Market sentiment is increasingly tilting toward a potential Reserve Bank of Australia (RBA) interest rate hike in February 2026, thus providing fundamental support for the Aussie.
Speculative positioning. Large traders are actively unwinding their short positions on the AUD, signaling growing confidence in its near-term strength.
On the flip side, the Canadian dollar faces several headwinds:
Oil weakness as a drag. Being a classic commodity currency, the CAD moves in lockstep with fuel. The recent slump in West Texas Intermediate (WTI) crude prices is acting as a direct anchor on the loonie.
Policy divergence in play. The most potent risk for the Canadian dollar lies in the interest rate gap. If the Bank of Canada embarks on a faster or deeper cutting cycle than the RBA, the loonie's yield appeal will erode, likely triggering capital flight and exchange rate weakness.
The ultimate recommendation is to buy AUDCAD. Lock in profits at 0.9360. Place Stop Loss at 0.9250.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
