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We have held a bearish outlook for the AUD/CAD since the beginning of September, and anticipate the pair to fall lower in the days ahead.
Currency Pair: AUD/CAD
Short-Term Bias: Short
Chart: 60 Min Charts
Analysis Update
The AUD/CAD has moved in our favor over the last few hours and has fallen back within the downward trending channel. We anticipate the pair to move towards the lower end of the channel over the next few days, and may see the aussie-loonie break below 0.8450 over the following week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
We have held a bearish outlook for the AUD/CAD since the beginning of September, and anticipate the pair to fall lower in the days ahead. Earlier this week, the pair bounced higher to hit an intraday high of 0.8806 on 9/22, but has come back down to hold near 0.8670-0.8680. We expect the underlying downtrend that began in August to drag the pair lower, and forecast the pair to fall back below 0.8575 over the next few days. The downward momentum may also lead the pair to test the 9/18 low of 0.8395 for support over the following week. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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