AUD/CAD Nears Breakout: Triple Bottom and MACD Divergence Signal Buy

For the past three weeks, the Australian dollar to Canadian dollar (AUD/CAD) pair has been in a correction phase. However, this correction seems to be nearing its end as the price approaches key resistance levels. What we observe is a triple bottom formation, with the first bottom occurring two weeks ago, the second bottom one week ago, and the third bottom forming at the beginning of this week. Additionally, there is a noticeable divergence in the MACD indicator: while the price made lower lows, the MACD did not, indicating a typical bullish divergence.

For a confirmed buy signal, we need the price to reach new weekly highs, which would entail breaking above the black and red downtrend lines. A close above these lines today would provide a strong buy signal. Given the recent high bullish momentum of the Australian dollar, this breakout is quite likely.

In summary, the triple bottom formation and MACD divergence suggest a potential bullish reversal for AUD/CAD. A breakout above the key downtrend lines would confirm this reversal and signal a buying opportunity. Traders should watch closely for the price to close above these resistance levels to capitalize on the anticipated upward movement.

Source: https://www.axiory.com/analytics/technical-analysis/aud-cad-nears-breakout-triple-bottom-and-macd-dive