AUD/CAD 1H Chart: Pressured by 55-hour SMA

The Australian Dollar was driven by strong downside momentum against its Canadian counterpart for four weeks and thus fell by 4.94%. This bearish sentiment allayed considerably mid-April when the rate entered a short-term period of consolidation. 

This movement sideways resulted in a breakout of the prevailing steep channel down. The pair has since remained stable, fluctuating around the 55-, 100– and 200-hour SMAs. 

It seems that the Aussie was trying to edge higher during the previous trading sessions, but halted under the bearish pressure of the 55-hour SMA. This line could push the rate lower today, but a decline should not surpass its 2018 low located at 0.9720. 

Meanwhile, it is expected that the Aussie gains enough momentum to push through all SMAs this week and advance even further. A probable near-term target is the 38.20% Fibonacci retracement and the weekly R1 near 0.9870, while the pair should approach the 50.0% Fibo at 0.9960 in the medium term.