AUD/CAD continues to rise in the short-term uptrend

• AUD/CAD is extending its sequence of rising highs and lows in a short-term uptrend.
• Given the extension trends, the pair is likely to rise towards the next target, subject to a break above the 200-period SMA.

AUD/CAD has established a sequence of rising peaks and troughs since finding a floor and reversing course on August 5.

It is probably now in a short-term uptrend, which, given that “the trend is your friend”, is more likely to continue to rise than not.

AUD/CAD 4 Hour Chart

The 200-period simple moving average (green) is above the current market level and appears to be acting as a resistance level. A break and close above the 200 SMA would provide confirmation of the continuation of the short-term uptrend. Such a break would also constitute an important milestone breached as it is the last significant rising SMA.

The next higher target is the resistance at 0.9190 from the old lows.

The Relative Strength Index (RSI) momentum indicator did not rise into overbought territory, however, suggesting that the market is not at risk of a pullback.

A break below 0.9020 would cast doubt on the short-term uptrend and could indicate a shift to a more bearish environment.