With an optimistic US jobs data out last Friday and a speech today by Federal Reserve Chairman Ben Bernanke awaited for hints of probable policy direction, the AUDCAD is seen to falter in its currency exchanges today. Earlier price action suggests that trades are apt to go lower as a resistance at the 1.0587 price mark hampers the currency pair’s long-term climb. Price activity opened at 1.0587, and has slid down since. Demand strength for the Canadian dollar is believed to be a result of the double whammy of strong employment change in July and an unemployment rate that leaves the door open for additional Fed measures to boost economic growth in the Canada’s primary trading partner.

Looking at technical indicator activity in the 30-minute time frame, after stretching the upper band of the Bollinger Bands(20) last Friday, the price formation has eased back down. It can now be observed that the candlesticks are pushing against the lower band of the same trend indicator. Such price activity allows for the accommodation of further selloff demand.

Also, the strides of the Stoch(14,3,3) oscillator are gaining ground along the 20.0 index. It can be observed that the %D line now heads the %K oscillator beneath the benchmark which signals support for the downside projection. Considering these factors, trades are anticipated to go south for the Aussie-Loonie. A short position is advised; though be wary of probable price corrections.