AUDCAD consistently building an uptrend

24 November 2023 122
AUDCAD consistently building an uptrend

AUDCAD is rising on Friday as the Canadian currency declines in correlation with the U.S. dollar amid the Thanksgiving holiday in the United States.

 

The rise in the Australian dollar is accompanied by a decline in oil prices following the decision of OPEC+ to postpone energy production cuts. Such a move emphasizes the potential reduction in energy costs in the near future. This could have wide-ranging economic consequences.

 

Meanwhile, inflation in Canada, as measured by the change in the Consumer Price Index (CPI), fell to an annualized rate of 3.1% in October from 3.8% in September. This reading was below the 3.2% expected by the market. Month-on-month CPI increased by 0.1%, which is in line with analysts' forecasts.

 

In addition, the Bank of Canada reported that the core monthly CPI, which excludes volatile food and energy prices, increased by 0.3%, while the core annual CPI fell from 2.8% to 2.7%. The data were released by Statistics Canada on Tuesday.

 

Bank of Canada Governor Tiff Macklem said on Wednesday that interest rates may be at their peak. The Bank of Canada, seeking to control soaring inflation, hiked rates 10 times between March of last year and July 2023, pushing rates up to a 22-year high of 5.00%. The inflation rate, which spiked to more than 8% last year, eased to 3.1% in October, but is still above the bank's 2% target. Data from Canada moderated the attractiveness of the local currency.

 

Earlier this week, the AUDCAD pair temporarily exceeded the October high of 0.9033, but then retreated slightly below this resistance level. Despite the decline, the Australian dollar maintains a bullish sentiment, forming an uptrend on the H4 time frame.

 

In terms of wave analysis, the AUDCAD pair price is currently forming the fifth ascending wave. The shortened structure of the third ascending wave can "transfer" the growth momentum to the fifth wave.

 

Signal:

Short-term prospects for AUDCAD suggest buying

The target is at the level of 0.9200.

Part of the profit should be taken near the level of 0,9050.

A stop-loss could be placed at the level of 0,8850.

 

The bullish trend is short-term, so trade volume should not exceed 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

error
More
Comments
New Popular
Send
Commenting rules