AUD/CAD Price Forecast: Bullish Support Retest Eyes 0.99940

The AUDCAD price forecast points to potential bullish continuation as buyers defend weekly support and the daily chart shows improving bullish market structure. After breaking above daily resistance, AUDCAD is retesting a former resistance zone that could now act as support.

The weekly chart shows bullish rejection around a higher low, while the daily chart highlights a potential continuation setup. Traders are watching 0.99265–0.99450 daily support for bullish confirmation, with 0.99940 as the next upside target.

An inverse head and shoulders pattern may provide additional confirmation if price has already broken above its neckline and successfully retests it as support.

However, the bullish outlook depends on price holding the relevant support levels. A confirmed break below 0.99100, followed by a failed recovery and additional bearish confirmation, could expose the next downside target at 0.98740.

Can AUDCAD hold daily support and extend toward 0.99940, or will a weekly support breakdown trigger another decline?

Key Takeaways

1. Weekly strength: Buyers are actively defending the 0.99100–0.99245 weekly support zone while maintaining a higher low.
2. Daily breakout: The price broke above resistance and is currently testing this old ceiling as a new floor.
3. Bullish target: A confirmed bounce from the 0.99265–0.99450 daily support zone puts 0.99940 in focus.
4. Bearish alternative: A firm daily close below 0.99100 could trigger a steep decline toward 0.98740.

AUDCAD Technical Analysis: What Supports the Bullish Outlook?

The analysis combines a bullish weekly trend with improving daily market structure.

The weekly chart provides the broader direction. The daily chart identifies the breakout and retest conditions to monitor for continuation.

These observations favor a bullish bias while support holds. The entry confirmation still depends on the reaction at the planned retest areas.

AUD/CAD Price Action Analysis: What Does Price Action Show?

AUDCAD Weekly Price Action Analysis: Buyers Defend a Higher Low

Weekly Timeframe Price Action Analysis

The weekly chart remains bullish, with price showing rejection around a higher low and the 0.99100–0.99245 weekly support zone.

Weekly Timeframe Price Action Analysis. Price Shows Rejections and Weekly Support Level

Identifying these swing points helps traders assess the broader trend and distinguish a normal pullback from a potential reversal. This approach combines market structure with support and resistance to establish key price areas before looking for lower-timeframe confirmation.

Key weekly observations:

1. Bullish market structure: The broader trend favors buyers while the previous significant swing structure remains intact.
2. Higher-low formation: Bullish rejection suggests buyers are defending the pullback.
3. Weekly support: The 0.99100–0.99245 zone is the critical area to monitor.
4. Bearish invalidation: A decisive break below 0.99100 would weaken the bullish outlook.

AUDCAD Daily Price Action Analysis: Former Resistance Becomes Support

Daily Chart Price Action Analysis

The daily chart shows a breakout above resistance, followed by a potential retest of the broken level as support. This reflects the principle behind identifying support and resistance levels, where previous resistance may become support after a confirmed breakout.

Key daily observations:

1. Resistance breakout: Price moved above a previously identified resistance zone.
2. Former resistance becomes support: The 0.99265–0.99450 area is the key retest zone.
3. Bullish candlestick confirmation: A rejection candle or engulfing pattern may indicate renewed buying pressure, particularly when it forms at a key level. The engulfing candlestick pattern provides one example of this type of confirmation.
4. Daily 50 EMA: This moving average provides an additional dynamic reference for assessing trend direction and potential resistance.
5. Daily invalidation: A sustained move below the retest zone would weaken the immediate bullish scenario.

AUDCAD Inverse Head and Shoulders: Why the Neckline Matters

Daily Chart Price Action: Price Retests the Daily Support and Inverted Head and Shoulder Neckline

An inverse head and shoulders pattern consists of three troughs, with the middle trough below the two shoulders. The neckline connects the intervening rebound highs, and a breakout above it may signal a potential bullish reversal. This structure is one of several bullish and bearish reversal chart patterns traders monitor when market structure begins to change.

For AUDCAD, the neckline should only be considered confirmed if price has already broken above it. A successful retest, followed by bullish rejection and upward follow-through, would strengthen the continuation scenario.

AUDCAD Support and Resistance Levels

AUDCAD levels represent Canadian dollars per Australian dollar. The targets remain conditional on the confirmations described below.

BTCUSD Price Action Forecast: Bullish and Bearish Scenarios

Bullish AUDCAD Price Forecast: Support Retest Eyes 0.99940

Daily Timeframe Price Action Analysis. Bullish Bias Anticipation

The bullish scenario depends on buyers defending the daily breakout area and maintaining the broader weekly structure.

Bullish Confirmation Checklist:

Daily Timeframe Price Action Analysis. Bullish Take Profit and Stop-loss Placement

1. Price retests the 0.99265–0.99450 daily support zone.
2. The previously broken neckline holds on a retest, provided the inverse head and shoulders breakout is confirmed.
3. A completed bullish rejection candle or another clear bullish price action signal appears at support.
4. Price follows through higher, indicating renewed buying pressure.
5. The broader weekly support structure remains intact.

If these conditions develop, 0.99940 becomes the next upside target identified in the supplied forecast. Nearby resistance may limit the advance, so traders should assess the available upside relative to the risk required by the setup.

The distinction between a simple touch and a confirmed retest is important. A move into support without a clear reaction does not establish a bullish entry signal.

Learn how to identify these conditions in Break and Retest: A Simple, Repetitive Price Action Pattern.

For additional confirmation, traders can study bullish and bearish pin bars and how to use the engulfing candlestick as an entry signal.

A sustained loss of daily support or a failed neckline retest would weaken the immediate continuation scenario.

Bearish AUDCAD Price Forecast: Weekly Breakdown Eyes 0.98740

Daily Timeframe Price Action Analysis. Bearish Bias Anticipation

The bearish scenario becomes more relevant if AUDCAD loses daily support and subsequently breaks below the broader weekly support zone.

A decline below 0.99245 alone does not confirm a full weekly breakdown because price could remain within the 0.99100–0.99245 support zone.

Bearish Confirmation Checklist:

Daily Timeframe Price Action Analysis. Bearish Take Profit and Stop-loss Placement

1. Price breaks below the 0.99100–0.99245 weekly support zone, with a decisive daily close below 0.99100.
2. Price attempts to recover and retests the broken weekly support from underneath.
3. A completed bearish rejection candle forms as former support begins acting as resistance.
4. Price breaks below the daily 50 EMA and shows further weakness on a retest, providing additional confirmation.
5. Price follows through lower rather than quickly reclaiming the broken support zone

If these conditions align, 0.98740 becomes the next downside target identified in the analysis.

The daily 50 EMA is a secondary reference, not a standalone sell signal. Moving averages lag price, so the broader market structure, support and resistance, and candlestick confirmation should remain central to the decision.

A brief move below support followed by a strong recovery would weaken the bearish breakdown interpretation and raise the possibility of a false breakout.

Learn how to recognize these situations in False Breakouts: How to Avoid Breakout Traps and Trade Smarter.

AUDCAD Trading Strategy: Confirm the Retest Before Entry

The current setup highlights why traders should combine market structure, key price levels and candlestick confirmation rather than entering solely because price reaches a support zone.

Before considering a trade:

1. Identify the weekly trend and the key swing high and swing low.
2. Mark the daily support and resistance zones.
3. Wait for price to test the planned area.
4. Look for a completed confirmation candle and follow-through.
5. Define the invalidation level before entering.
6. Calculate position size based on the distance to the stop-loss and the amount of capital at risk.

Assess the potential reward relative to the risk and nearby resistance or support.

For further guidance, read Risk Management in Trading: The 20% That Determines Long-Term Trading Success and Master Position Sizing in Trading: 5 Rules to Protect Your Capital and Grow Your Account Consistently.

Traders planning the bullish scenario should also consider whether the distance to 0.99940 offers a reasonable potential reward after accounting for the stop-loss and nearby resistance. For the bearish scenario, the same assessment applies to the distance toward 0.98740.

A target is a planning reference, not a guarantee of where price will move.

Final Take

The supplied AUDCAD price forecast favors bullish continuation while weekly support holds and the daily breakout remains intact.

The immediate focus is the 0.99265–0.99450 daily support zone. A successful retest, bullish candlestick rejection and upward follow-through could strengthen the case for a move toward 0.99940.

Alternatively, a confirmed daily close below 0.99100, followed by a failed recovery, bearish rejection and additional weakness around the daily 50 EMA, would bring 0.98740 into focus.

The key is to let price confirm the scenario. A bullish weekly structure does not eliminate downside risk, and a daily pullback does not automatically confirm a bearish reversal.

Wait for the retest, assess the reaction and define the risk before considering an entry.

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Past performance and historical price movements are not reliable indicators of future results. Any price levels, targets, scenarios, or market outlooks discussed should be viewed as analysis rather than guarantees of future market performance. October 13, 2026