Forex: AUD/CAD back below 1.0100

[John Starks]

FXstreet.com (San Francisco) - Last week’s AUD/CAD bounce from the 0.9950 area extended into the 1.0115 price zone on Monday, reaching a 12-day high as control is shifting back towards the bulls. The 38.2% Fibonacci support level of the 0.8755/1.0781 advance attracted heavy bids.

Fan Yang, CMT, Chief Technical Strategist at FXTimes observes that the AUD/CAD “appears to be forming a double bottom in the daily chart IF it can clear above the 1.0110 resistance pivot area,” which represents a declining trendline from February as well as the May-high.

Should AUD/CAD records a sustained break of the mentioned pivot area, Mr. Yang identifies further progressively more aggressive targets at 1.0180-1.02, 1.03, then at 1.04.

The pair last trades at 1.0083 as it opens the Asian session, having gained 0.3% on Monday. To the downside, intraday support is noted at 1.0066, then below at 1.0042.