The upward trend of the AUD/CAD chart which steadily continued amid a decreasing of oil prices and other factors, is under the risk of being completed. A rising of oil prices and a strengthening of the USD allowed the Canadian currency to strengthen amid disappointing statistics on the economy of Australia. The support line has been broken and greatly displaced down. That is why now we can see that the downtrend is formed, though it's early to say whether the current upward trend is over - it can still be restored next week. The Australian currency may take again the initiative, considering that in the near future the market is not expecting any important data on the Canadian economy.
At the same time, next week we expect important information from China and New Zealand, which may impact the value of the Australian currency, as Australia is a leading trade partner of these two countries. Yesterday the AUD increased significantly during a single day - with 0.997 up to 1.008 CAD, thanks to the latest information about the economy of China, where in March exports grew 16.4% year-on-year and imports by 20%. In particular, imports from Australia grew by 74.8%. Something else that also positively impacted the strengthening of the Australian dollar are the strong statistics on the labour market - recent reports by the Australian Bureau of statistics show the employment change indicator was 60.9K, against the predicted three times less 20.
Today we can't expect volatility on the market because of Easter's holiday in Australia and Canada, so the rates of the AUD/CAD probably will come to a consolidation phase. On Monday trading will be more active and the probability of a price correction will increase. Oscillators give mixed signals, but in the current situation of a low volatility on the market we can pay attention to the entry points 1.0072 and 1.0085. At the moment in medium-term trading, we'd recommend opening the deals to SELL, trusting the Stochastics oscillator.
