News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Base-Building Phase Near Completion, 1.0000 Remains the Medium-Term Target
Summary:
AUD/CAD has retreated toward the lower boundary of its two-month trading range, where price volatility has narrowed significantly, suggesting that the pair is entering a base-building phase. With the Reserve Bank of Australia maintaining a relatively hawkish stance while Canada's economic momentum continues to soften, the medium-term fundamental outlook increasingly favors the Australian dollar. As long as key support remains intact, the pair is expected to resume its upward trend after completing its consolidation, with the psychological 1.0000 level remaining the primary medium-term objective.
Buy
TradingAUDCAD
EXP
0.97971
Entry Price
1.01000
TP
0.95750
SL
0.98252 +0.00403 +0.41%
0
Point
Flat
0.95750
SL
CLOSING
0.97971
Entry Price
1.01000
TP
Fundamentals
AUD/CAD is currently trading around 0.9805, with market attention shifting back to the monetary policy outlook of both central banks and developments in commodity prices.
In Australia, although economic growth has moderated, inflation remains above the Reserve Bank of Australia's target range. As a result, the RBA is expected to maintain a relatively restrictive policy stance in the near term. Higher-for-longer interest rates should continue to support the Australian dollar, while improving global risk sentiment would further benefit commodity-linked currencies.
In Canada, stable energy prices continue to provide some support for the Canadian dollar. However, signs of slowing economic growth are becoming more evident, with consumer spending and the housing market still constrained by elevated borrowing costs. Consequently, market expectations for additional tightening by the Bank of Canada remain limited, restricting the upside potential for the loonie.
From a broader perspective, a gradual recovery in global manufacturing activity would benefit Australia's resource exports, whereas the Canadian economy remains more closely tied to crude oil prices. If oil prices enter a prolonged consolidation phase, the Canadian dollar's relative advantage may weaken, creating additional room for AUD/CAD to appreciate.
Overall, the fundamental balance is gradually shifting from favoring the Canadian dollar toward supporting the Australian dollar, providing a solid foundation for further medium-term recovery.
Technical Analysis
On the daily chart, AUD/CAD has retreated from recent highs and is now trading near the lower boundary of its previous consolidation range. The 0.9780-0.9820 area is gradually developing into a new support zone.
Recent candlesticks have become progressively smaller, while price volatility has declined noticeably, indicating that bearish momentum is fading and the market is entering a classic bottoming process. From a structural perspective, as long as the previous swing low remains intact, the current decline is more likely to represent a corrective pullback within the broader uptrend rather than the beginning of a new bearish cycle.
Meanwhile, the moving average system is beginning to flatten, with the gap between short- and medium-term moving averages continuing to narrow. This suggests that the market is accumulating momentum for its next directional move. Once the pair reclaims the 0.9850 resistance area, bullish momentum is expected to strengthen further.
A decisive break above the 0.9900 psychological level would likely improve market sentiment significantly, paving the way for a move toward the key 1.0000 resistance. Besides being a major psychological milestone, this level also coincides with a previous high-volume trading zone, making it a critical medium-term upside target.
Overall, as long as the lower boundary of the trading range continues to hold, AUD/CAD's medium-term bullish structure remains intact. The current sideways consolidation is viewed as a base-building phase before another advance, with the pair expected to gradually extend its rally toward the 1.0000 handle.
Trade Recommendation
Direction: Buy
Entry Price: 0.9780
Target Price: 1.0100
Stop Loss: 0.9575
Valid Until: 2026-07-28 23:55
Support: 0.9766, 0.9745, 0.9724
Resistance: 0.9834, 0.9868, 0.9943
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.