After peaking to 0.8850 earlier this week, the AUDCAD has moved lower to hold within a tight range between 0.8738 (50.0% Fib level of 0.8360-0.9125) and 0.8514 (21.4% Fib level of 0.8360-0.9125).
Currency Pair: AUD/CAD Short-Term Bias: Short Chart: 15 Min Charts
Analysis Update
Price action has moved in our favor over the past few hours, and we expect the downward trend to hold for the time being. The AUDCAD looks to be testing 0.8515 (21.4% Fib level of 0.8360-0.9125) for near-term support, but we anticipant the downward momentum to lead the pair lower. We will continue to hold bearish outlook for the pair, and forecast the pair to break below 0.8500 over the next few days. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After peaking to 0.8850 earlier this week, the AUDCAD has moved lower to hold within a tight range between 0.8738 (50.0% Fib level of 0.8360-0.9125) and 0.8514 (21.4% Fib level of 0.8360-0.9125). Price action has been bouncing around the 120 SMA, and has moved along the top of the channel.
The AUDCAD looks to be finding support near 0.8515, and may hold within its current range over the next few hours. The downward momentum is anticipated to lead the pair towards the lower end of the channel over the next few days. The underlying downtrend has led us to hold a bearish outlook for the aussie, and we expect the pair to break below 0.8500 to test 0.8425 for support over the following weeks. 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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