AUDCAD Forming Bullish ContinuationAUDCAD is showing strong signs of a potential bullish continuation as price consolidates just below a key resistance zone around the 0.9200 region. The market has maintained higher lows, reflecting steady buyer interest and a gradual shift in sentiment toward the upside. If the pair manages to break above this resistance with strong momentum, it could confirm a breakout structure, opening the door for a rally toward the 0.9350–0.9400 levels in the coming sessions. The technical picture supports the idea of accumulation, with the market forming a bullish flag-type pattern before continuation.
From a fundamental perspective, the Australian dollar remains relatively supported as the Reserve Bank of Australia maintains a firm tone on inflation and continues to assess the impact of its prior tightening measures. Meanwhile, the Canadian dollar has been weighed down by weaker oil prices and softening domestic demand, which have limited the Bank of Canada’s ability to maintain a hawkish stance. The diverging central bank outlooks and commodity performance are creating a favorable backdrop for further AUD strength against the CAD.
As long as AUDCAD holds above the 0.9100 support region, buyers are likely to maintain control, with the next key level of interest being the 0.9250 zone. A confirmed breakout above resistance would strengthen bullish conviction and align with the broader upward trend that has been building since mid-year. This setup remains technically and fundamentally aligned for potential continuation, making it a pair to keep on the radar for bullish opportunities in the near term.
