2026-01-19 04:15:00
AUD/CAD is consolidating after a strong start to the year.
Will the pair continue to trade inside its range?
Or will we see a breakout in the next few days?
The Australian dollar started the week on a bearish note, with fresh threats of additional U.S. tariffs on European goods weighing on overall risk sentiment.
The oil-related Canadian dollar also came under pressure against safe haven currencies, but it found support against fellow commodity currencies like the Aussie, as rising geopolitical tensions raised the prospect of higher oil prices.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/CAD has been in an uptrend since the start of the year and recently ran into resistance near the .9320 area before settling into a roughly 60-pip consolidation range.
A stretch of green candlesticks and sustained trading above the .9320 resistance could keep the broader uptrend intact and open the door for a move toward the .9400 psychological handle.
On the other hand, a few more bearish swings and consistent trading below .9260 could invite fresh selling pressure and drag AUD/CAD back toward previous areas of interest near .9200 or even .9160.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
