AUDCAD surged to a fresh almost 5-month high during today’s European session above the strong psychological level of 0.9900. The price headed for a test of the 0.9915 barrier and successfully surpassed it confirming the recent scenario for further gains.
In addition, the pair jumped above the downward sloping channel, which has holding since May 2017 and is approaching the 50-week simple moving average of 0.9940. In the daily chart, AUDCAD is trading well above the 20 and 40 SMAs and the sharp upward rally started after the rebound on 0.9710.
From the technical point of view, in the near-term, the RSI indicator holds in the positive territory and is moving towards the overbought zone, whilst the MACD oscillator posted a bullish crossover with its trigger line in the previous sessions and is strengthening its bullish momentum.
If traders boost the price further up, they could drive it until the 1.0000 strong handle but it needs first to go through the 50.0% Fibonacci retracement level at 0.9960 of the down-leg with the high of 1.0345 and the low of 0.9580.
Conversely, a dip back below the 38.2% Fibonacci level of 0.9870 and the falling trend line of the downward sloping channel the immediate support level to watch is the 23.6% Fibonacci mark of 0.9760, which coincides with the 40-day SMA.
