The AUDCAD pair sprinted higher at the early Asian session after it opened at the 1.0062 price mark. It was rapidly taken to the 1.0134, yet price pulled back to return towards its opening level and close at the 1.0060 price level.

With its gradual depreciation at the late North American exchanges yesterday, which extended in today’s trades, there is still an overall bearish psychology that dominates the pair, although it has slowed down the downtrend. The rallies in the pair continue to be sold when it comes to the near-term corrections. The likely level for exhaustion, based upon the past resistance is below the 20-period EMA line which is located at the 1.0075 price mark. Meanwhile, since this level is approximately 15 pips from the current price action, the intraday bearish trend will most likely gather more momentum for another deep dive in the succeeding hours.

 

The Aussie-Loonie is projected to continue to hit new lows particularly with weak Asian equities in recent days, on concerns about global economic growth. A weak Australian dollar suggests the continuation of the bearish trend in the AUDCAD where the RSI(14) in both the near-term and medium-term projections, expected to dip back towards the 30 level. The buoyancy of the downtrend as hinted by the bearish MACD(12,26,9) while prices are coated by the sliding EMA(10), EMA(20) and EMA(50) indicator lines around the 1.0088 area is surmised to accentuate the strength of the Loonie to defeat its Australian equivalent.

 

Currently, the projections of the indicators imply that AUDCAD’s exchanges are confined in a depressed region and are set to regress further on that resistive zone. Given these, the technical set up of the AUDCAD concedes a short position as the price action just below the recorded Thursday’s closing price mark is likely being influenced by the rising threat of increased weakness in the approaching deals. Selling the pair is affirmed.