special reports

AUD/CAD Short-Term Technical Outlook (update)

Thursday, 16 October 2008 11:37:10 GMT  |  David Song, Currency Analyst

Heavy selling pressures during October pushed the AUDCAD to a low of 0.7152 on 10/8, and increased volatility for the aussie-loonie may offer profitable opportunities for forex traders.

Currency Pair: AUD/CAD
Chart: 30 Min Charts
Short-Term Bias: Bearish

Analysis Update

                The AUDCAD has moved slightly higher during the overnight Asia session as expected, and we may see the pair cross over the 120 SMA by the end of the session. However, I anticipate the downward momentum to lead the pair lower over the week, and may work its way down towards the 10/13 low of 0.7545 by the following week. Meanwhile, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

 

Analysis

Heavy selling pressures during October pushed the AUDCAD to a low of 0.7152 on 10/8, and increased volatility for the aussie-loonie may offer profitable opportunities for forex traders. After falling to a multi-decade low, the pair has bounced back to hit a high of 0.8273 this week. More recently, the pair dipped below .7750 to trigger an oversold RSI signal, and we may see the pair continue to move higher over the next few hours, However, the failure to break above 0.8202 (78.6% Fib level of 0.7152-0.8496) suggests that the will fall lower over the coming days, and I anticipate the pair to hold its current range in the near-term. 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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