The AUDCAD currency pair is showing less volatility than other forex trading pairs. After plunging in early April following Trump's initial tariff announcement, the pair managed to establish an upward trend. By May 13, prices had risen 6.23%, surpassing the 0.9 threshold and testing its 200-day moving average. Subsequently, the instrument reversed into a downtrend. As of May 30, it has dipped below April’s peak, trading near 0.888 at a local support level, with the next support zone at 0.886.
On the daily timeframe, the Moving Average Convergence/Divergence indicator (MACD) is above the zero level, showing a clear gradual weakening of bullish momentum as it approaches the baseline. The four-hour MACD remains steadily below zero, will bearish impulses alternately weakening and strengthening.
The daily RSI has exited the bullish zone after a month-long stay, dropping to 48, suggesting a slight dominance of short positions over previously prevailing longs. AUDCAD currently lacks directional bias. The four-hour RSI stands at 52, oscillating around the pivotal 50 level for an extended period, reflecting choppy price action without a clear trend. Collectively, the RSI suggests potential consolidation within a narrow range due to subdued volatility.
The Bank of Canada is expected to maintain its 2.75% interest rate at the June 4 meeting, rather than cutting by 25 basis points. Policymakers are reluctant to act hastily, awaiting concrete data on the actual economic impact of Trump’s tariffs. However, Canada’s weak labor market increases the likelihood of rate cuts—a scenario that would gain further traction if today’s upcoming GDP figures disappoint.
Trading strategy option: sell at the current price with Take Profit at 0.88400 and Stop Loss at 0.893000.
This content is for informational purposes only and is not intended to be investing advice.
