Chart Image: AUD/CAD retracement trend set around 0.9550

AUD/CAD is testing a key support zone after several days of losses.

Will the bulls step in to extend the long-term uptrend?

Or will we see a breakout to the downside in the next trading sessions?

The Australian dollar was one of the weakest major currencies this week despite expectations of a hawkish RBA as jitters over the US-Iran war and falling gold prices dampened demand for the commodity-linked currency.

The Canadian dollar hasn’t been a great performer, but it has managed to hold up better than some commodity peers thanks to the recent rally in oil prices.

With the AUD/CAD slide starting to show signs of wearing off, today’s US NFP release and Canada’s IVEY PMI report could eventually change the tone and prompt the pair’s next move.

Remember that movements in the direction and conditions of market price volatility are usually driven by fundamental factors. If you haven’t done your homework yet Australian dollar and Canadian dollarthen it’s time to check the economic calendar and stay up to date with the daily fundamental news!

AUD/CAD recently declined from the .9750 area and is now trading closer to the .9600 area. The .9550 – .9600 area is worth watching as it coincides with the 61.8% Fibonacci retracement of the February rally, the 200 SMA on the 4-hour chart and the S2 pivot point line (.9590).

If we see a few more green candlesticks and a sustained trade above 0.9600, the pair could set up a move back to the previous highs of 0.9700 to 0.9750 and possibly even to new 2026 highs.

But if AUD/CAD breaks below 0.9600 or begins to trade consistently with trendline support, the pair may be waiting for a move towards the 0.9500 inflection point.

Whichever bias you trade, remember to practice proper risk management and watch for top-level catalysts that can affect overall market sentiment.

Promoted: Analysis and strategy are only half the battle; Your mindset is the rest.

Today’s chart pattern is increasing the AUD/CAD trend pullback setup. But as any professional will tell you, even the cleanest trend pattern can fall apart if the trader is not disciplined when the price starts to test the level.

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Please note that the technical analysis content provided here is for informational and educational purposes only. It should not be construed as trading advice or offering any particular direction. Technical analysis is only one aspect of a comprehensive trading strategy. The technical setups discussed are meant to highlight potential areas of interest for other traders to observe. Ultimately, all trading decisions, risk management strategies and their resulting results are the sole responsibility of each individual trader. Trade responsibly.