Traders anticipate that the Australian dollar (AUD) will remain weak in the near future while showing a bullish outlook for the British pound (GBP) against the Canadian dollar (CAD). Several factors are contributing to this sentiment, including economic data, geopolitical events, and market trends.

The AUDNZD Performance

AUDNZD bearish trend continuation.

AUDNZD confirmed a bearish trend after an aggressive weekly timeframe impulse wave formed which broke the previous structure's low levels. Then a retracement formed created a lower high and confirmed a descending trendline where the market found sellers and dropped. 

This price action provided further confirmation of a bearish market. Recently the market retraced back to the trendline as well as the 61.8 fib level and has dropped +70 pips so far. According to this price action, traders are bearish and anticipate the market to drop and form new lows.

The AUDUSD Performance

Is AUDUSD about to resume the bearish trend?

AUDUSD entered its 6th week of consolidation. This formed after the market aggressively dropped from the resistance zone around 0.71360 and broke below the support zone around 0.67797. The market has since failed to break back above the resistance zone which indicates that the bears are still in charge of this market. Traders anticipate a break below the counter-trendline to confirm a continuation of the trend and provide trading opportunities.

The GBPCAD Performance 

GBPCAD broke above the resistance zone.

GBPCAD just confirmed momentum to the upside by breaking above the resistance zone around 1.68382 and is likely going to create a higher high. This means a retest of the support zone will provide trend continuation trading opportunities. According to this price action, traders are bullish and anticipate the trend to continue.

Final thoughts on today’s analysis 

In conclusion, traders are expecting the AUD to remain weak while expressing bullish sentiment towards the GBP and CAD. Economic data, geopolitical events, and market trends are all contributing to this outlook. Traders may be considering opportunities in the GBPCAD currency pair but should exercise caution and carefully manage their risks.