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AUD/CAD - Bulls Showing Control; 0.9850 in Sight

Earlier this week, we saw a key bullish breakout in the AUD/CAD following the RBA statement, which the market interpreted as slightly hawkish relative to prior statements. The main difference was that the statement did not mention concern of the AUD being too high. 

AUD/CAD 1H Chart 8/7
(click to enlarge)

The 1H AUD/CAD chart shows that after the reaction to the RBA statent, the pair rallied to almost 0.9750 before retreating back to 0.9617. Today (8/7, Friday), we saw Canadian jobs data, which was not bad, but nothing to write home about. After an initial jerk back to 0.9617, AUD/CAD rebounded sharply and is now pushing above a falling speedline formed by this week's consolidation pattern.

The fact that price remains above the 200-, 100-, and 50-hour simple moving averages (SMAs) suggests that bulls are still in charge of this market after that RBA-reaction.

AUD/CAD Daily Chart 8/7
(click to enlarge)

The daily chart shows that the AUD/CAD has been mostly bearish in 2015, but has flattened out in the recent months. This week, the pair broke above a couple of falling trendlines and broke the pattern of lower highs. Price is now above the 200-, 100-, and 50-day SMAs, while the daily RSI is pushing above 60. Furthermore, the fact that price action crossed above the SMAs and is now respecting the cluster as support is known as a "bullish slingshot" signal.

While the AUD/CAD looks to have turned the corner into a bullish mode, a conservative bullish outlook should be limited to February-March highs around 0.9850-0.9875.