Preparing for the next Bank of Canada meeting
Technical Analysis Summary AUD/CAD: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, AUDCAD: D1 has exited the downtrend and is moving towards the upper border of the neutral range. A number of technical analysis indicators have formed signals for further growth. We do not rule out a bullish movement if AUDCAD rises above the last high and the upper Bollinger band: 0.929. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the lower Bollinger band and the last 2 lower fractals: 0.909. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (0.909) without activating the order (0.929), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.
Fundamental Analysis of -
Getting ready for the next meeting of the Bank of Canada (BoC) and the publication of economic data in Australia. Will the AUDCAD quotes continue to rise?
The upward movement means the strengthening of the Australian dollar against the Canadian dollar. The BoC meeting will take place on October 27. It is expected to keep the rate at the current level of + 0.25% despite the growth of inflation in Canada, in September to + 4.4% in annual terms. This is the maximum since 2003. Growth in Canadian GDP in July was + 4.7% in annual terms. This is noticeably less than the forecast + 11.7%. August GDP data will be released on October 29th. Its growth is expected to be + 6.4%. In Australia, on October 27, there will be data on inflation for the 3rd quarter of this year. It is expected to decline to + 2.7% in annual terms from + 3.8% in the second quarter. This is noticeably less than in Canada. Note that the Reserve Bank of Australia (RBA) rate is + 0.1%. The meeting will take place on November 2. Australian GDP in the second quarter grew by + 9.6% on an annualized basis. This is more than the similar Canadian indicator.