The AUD/CAD stopped and reversed its descent last week at a key support level, 1.005. The pair has changed direction at this level many times over the last 2 years, both bullish and bearish. The weekly chart is attempting to close as either a long tailed Doji or a pin bar reversal, either of which could indicate that price is going to continue higher. This week is a big week for the European Union as well as the USA with QE3 or other alternatives as well as a ruling from the German constitutional court that will enable the bailouts to proceed for Spain and others. This is a great reason to stay away from the 'big two' and the AUD/CAD might offer some nice trading opportunities. If the weekly reversal pattern holds true, look for resistance at important levels like 1.0195 & 1.0315 with key support levels at 1.003 + 0.9988. If prices do head higher, 1.0315 will be key for the bulls as this is the 62 day EMA, a break of which will indicate a true momentum shift to the upside and could mean a revisit of the 6 month high at 1.0598. A break of last weeks low however could provide another selling opportunity with 0.9900 & even 0.9700 being possible.
Happy Trading!