AUD/CAD Buyers Aim to Establish a Short-Term Uptrend

Market Overview

The Australian Dollar began the week on a stronger footing, buoyed by an improvement in February’s Manufacturing PMI data, which reflected renewed optimism in domestic business activity. In contrast, the Canadian Dollar lacked directional drivers, with no significant economic releases scheduled. As a result, AUD/CAD found a window of opportunity for buyers to regain control and test higher levels.

Technical Analysis

On the hourly chart, AUD/CAD is attempting to complete a short-term bullish reversal pattern that began forming after the pair established a base at the psychological level of 0.90000. Buyers have successfully pushed the price above the resistance at 0.90189, gaining proximity to the 100-period moving average—a key area of interest.

A sustained move above 0.90240 would confirm bullish continuation, exposing the next upside targets at 0.90306, 0.90378, and 0.90495. Momentum indicators support this scenario, as RSI trends higher and MACD shows expanding bullish bars. However, if sellers return and drive the price below 0.90000, the bullish setup would be invalidated, suggesting a renewed downside risk.

Key Technical Levels

• Resistances: 0.90240, 0.90306, 0.90378, 0.90495
• Supports: 0.90189, 0.90117, 0.90000

Fundamental Drivers

With no major releases from Canada, the focus shifts to Australian fundamentals. February’s PMI rebound suggests resilience in the Australian economy, providing a fundamental backdrop for AUD strength. Market participants will remain attentive to upcoming data, but in the short term, sentiment appears to favour the Aussie.

Conclusion

AUD/CAD is showing bullish potential above 0.90240, with buyers targeting 0.90378 and 0.90495. A drop below 0.90000 would nullify the bullish bias.

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