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
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.
