As seen on the one-hour chart, AUD/CAD was traded in a range on Thursday after the uptrend lost its momentum and retreated from the top at 0.90123. After a drop below its range support at 0.89441, AUD/CAD sellers have targeted the low of November 15 at around the 0.89093 mark to establish a reversal. In the early stages, intensifying bearish sentiment can send the pair below this hurdle, which will pave the way towards further decline. In that case, the 0.88874 can prove to become immediate support to the price. If sellers also break this latter, we can estimate the next hurdle around the 200-EMA, lining up with 0.88610.
Otherwise, should buyers retake control, AUD/CAD will find a chance to rebound towards the 50-EMA, which is in line with the previously broken support of 0.89441. however, bulls need to overcome the 0.89795 barrier to take the upper hand for resuming the prior uptrend.
Short-term momentum oscillators reflect accelerating selling bias in the market. RSI is landing close to the oversold area at the 30-level. momentum decline has been fueled by selling forces, approaching its lowest extreme in the selling zone. MACD bars are getting taller below the zero line, suggesting the short-term negative momentum is increasing.
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