Technicals point to AUDCAD decline

05 April 2024 97
Technicals point to AUDCAD decline

The AUDCAD pair is declining on Friday, as Australia's trade surplus shrinks and Canada's employment report is awaited.


According to the latest data released by the Australian Bureau of Statistics on Friday, Australia's trade balance narrowed to 7.280 billion Australian dollars in March, compared to the forecast of 10.4 billion. Against this backdrop, the Australian dollar lost 0.20%.


Meanwhile, Canada's trade balance posted its largest surplus since October. This was due to a sharp increase in gold shipments to Switzerland and the United Kingdom.


The country's trade surplus widened to 1.39 billion Canadian dollars in February from 608 million a month earlier, Statistics Canada said Thursday.


Total exports surged 5.8% in the month, the biggest percentage increase since August 2023, while total imports rose 4.6%. In volume terms, exports rose 6.2% and imports rose 4.1%.


Statistics Canada will release the country's employment report today. The change in employment is expected to fall to 25.9 thousand from the previous level of 40.7 thousand. If these modest expectations are exceeded, the Canadian Dollar could strengthen significantly.


Technically, AUDCAD is in a narrow correction on the H4 timeframe. The price has retreated from the upper boundary of the correction range and is targeting the opposite boundary.


The Relative Strength Index (standard values) has moved out of the overbought zone on the H2 timeframe, signaling a potential decline in the pair's value.



Short-term prospects for AUDCAD suggest selling

The target is at the level of 0.8810.

Part of the profit should be taken near the level of 0.8875.

A stop-loss could be placed at the level of 0.8970.

The bearish 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.

New Popular
Commenting rules