Commodity Currencies: Fresh Buy Signal on AUD/CAD

In today’s technical analysis, a clean buy signal has emerged on AUD/CAD, supported by both technical structure and strong fundamentals from Australia. Overnight, Australia delivered excellent labour market data — lower unemployment and higher employment change — which boosted demand for the Australian dollar and provided the catalyst for the breakout.

On the H1 chart, price had been moving inside a flag pattern marked with blue lines. This flag represented a typical bearish correction inside an active uptrend, and after the strong reversal seen on Friday and Monday, momentum already hinted that buyers were preparing for another push.

The decisive moment came overnight:

• Price broke out of the flag to the upside,

• Price broke above the orange horizontal resistance,

• And both breakouts were backed by strong fundamentals.

This combination gives us a proper buy signal on AUD/CAD. A mild pullback is possible — even likely — but as long as the price stays above the orange horizontal support and above the dynamic uptrend line, the sentiment remains strongly positive and buyers should maintain the upper hand.

Source: https://www.axiory.com/analytics/technical-analysis/commodity-currencies-fresh-buy-signal-on-aud-cad