© Dukascopy Bank SA
AUD/CAD has been very volatile since the beginning of 2016. Despite that, the pair managed to sustain itself in a downtrend, while in the short-term we see the Aussie even lower. Immediate support is currently being offered by the monthly S1 at 0.9779; however, without any help from below the bearish pressure is unlikely to be contained here. We estimate a drop to prolong through 0.97 and to be limited by the southern trend-line at 0.9676. Based on weekly technical indicators, AUD/CAD should start a rally in course of the next five trading days. However, in case a slump results in a breach of the monthly S2 at 0.9655, the focus will quickly turn to the November low at 0.93.
© Dukascopy Bank SA