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- Friday, 16 October 2009 20:19:30 GMT FX Technical Weekly
- Friday, 16 October 2009 15:38:06 GMT Australian & New Zealand Dollar Outside Days Warn of Reversals
- Friday, 16 October 2009 09:48:52 GMT Euro Finding Offers Ahead of 1.5000; Kiwi Sell Recommendation Issued (Morning Slices)
- Thursday, 15 October 2009 14:32:51 GMT British Pound Surges into Fibonacci Resistance
- Thursday, 15 October 2009 05:24:16 GMT Sterling Finally Plays Catch-Up (Morning Slices)
- Thursday, 15 October 2009 07:56:53 GMT EUR/USD Sell Recommendation Issued @1.5035 (Daily Classical)
- Wednesday, 14 October 2009 14:56:16 GMT US Dollar Slips Lower; Euro Resistance Line at 1.5000 Today
- Wednesday, 14 October 2009 06:46:55 GMT Euro Surge Exposes Psychological Barrier (Daily Classical)
- Tuesday, 13 October 2009 18:19:16 GMT New Zealand Dollar Shows Reversal Characteristics
- Tuesday, 13 October 2009 07:47:43 GMT Euro Double Top Prospects Intact (Daily Classical)
- Monday, 12 October 2009 14:39:22 GMT Canadian Dollar Reaches Measured Objective Above 1.0300
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Friday, 09 October 2009 21:51:30 GMT FX Technical Weekly
- Friday, 09 October 2009 08:17:49 GMT British Pound Consolidates, Euro Hints Double Top Against US Dollar
- Thursday, 08 October 2009 14:42:21 GMT Dollar Fear Escalates as Prospect of a Panic Decline Emerge
- Thursday, 08 October 2009 06:28:39 GMT Prospects Fade for USD Bulls (Daily Classical)
- Wednesday, 07 October 2009 14:32:02 GMT Dollar Fights Back-AUD and NZD Reach Early 2008 Prices
- Wednesday, 07 October 2009 06:41:58 GMT Euro Stops Narrowly Averted (Daily Classical)
- Tuesday, 06 October 2009 18:26:25 GMT EUR/GBP Failure at Resistance Provides Scalping Opportunity
Narrowing demands for carry trades continues to favor a bearish outlook for the Australian dollar, and I anticipate the pair to move lower over the near-term as investors curb their appetite for risk.
Currency Pair: AUD/CAD
Chart: 60 Min Charts
Short-Term Bias: Bearish
Analysis Update
Over the last few hours of trading, the AUDCAD has cross below the 120 SMA as expected to slip below 0.7900, but has bounced back to hold near the moving average. The immediate pullback in the pair suggests that the aussie-loonie may hold with a narrow range between 0.7870-0.8120 for the remainder of the trading session however, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook. The move to the upside suggests that the pair may break above the 120 SMA during the remainder of the trading session, but I anticipate the pair to hold below the 38.2% Fib retracement level. Over the following week, I expect increased selling pressures to drag the pair lower over the near-term, and we may see the pair work its way towards the 10/28 low of 0.7777 over the following week.
Analysis
Narrowing demands for carry trades continues to favor a bearish outlook for the Australian dollar, and I anticipate the pair to move lower over the near-term as investors curb their appetite for risk. On 10/29, I noted that the AUDCAD’s ‘failure to break above 85.00 suggests that the pair will continue to move to the downside,’ and as expected, the pair is certainly working its way back to the downside. Over the remainder of the trading session, I anticipate the pair to cross below the 120 SMA, and may test 0.7726 (21.4% Fib level) for short-term support. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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