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AUDCAD recovery scenario | trade of the week

AUDCAD could be setting up for a recovery move toward the 0.97 area as rotation between key commodity markets comes back into focus.

In this week’s Trade of the Week, we note that the previous Gold idea targeting the 5600 area remains in play. While the price has not yet reached the target, the scenario is still valid. Since the beginning of 2025, 38 out of 50 published ideas have been successful — a 76% hit rate.

This week, attention shifts to AUDCAD with a potential target near 0.97. The pair has bounced from the lower Bollinger Band on the daily chart and is developing an upswing in the direction of the broader trend.

Fundamentally, this pair reflects the dynamics between two key commodities: the Australian dollar is closely linked to gold, while the Canadian dollar is tied to crude oil. Oil volatility has eased following recent geopolitical developments, while gold may return to focus as markets reassess inflation risks.

Traders will watch US inflation data this week, particularly CPI on Wednesday and the PCE index on Friday. These releases could influence the US dollar and overall market sentiment.

Timestamps:
0:00 - Intro
0:18 - Review of previous gold trade idea and performance
0:44 - New trade idea: Long AUD/CAD with 0.97 target
1:03 - Commodity links: AUD with gold, CAD with crude oil and recent oil volatility
1:31 - Market sentiment, gold behavior during crises, and AUD vs CAD outlook
1:59 - Gold futures volume, open interest, and Canadian vs Australian bond yields
2:24 - Key economic data this week: US CPI and PCE inflation
2:46 - Trade summary and factors that could impact the AUD/CAD setup

Trading is risky.
Always do your own research and manage your risk carefully.

#AUDCAD #forex #tradeoftheweek #commoditycurrencies #gold #crudeoil #CFDtrading
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