AUD/CAD on the four-hour chart is trading in a downtrend. The consecutive lower tops and bottoms have put the pair in a descending channel. The fall became more severe after the price hit the channel's upper border in the vicinity of the 200-EMA. Another piece of evidence from the chart is the break of the 0.88892 last market bottom, which has propelled further decline toward the 161.8% Fibonacci projection of the previous upswing. Sellers will likely take a breather around this crucial support for some time. However, if they keep driving the market below this hurdle, attention will turn to 0.88182, which is in line with the two-month low seen last week. Such a move will bring the channel's bottom border into the spotlight.
Otherwise, a bounce back to the broken support of 0.88892 might be in order if buyers regain control. Although, as long as the pair hovers below the 200-EMA, the broad picture remains bearish.
Short-term momentum oscillators imply a bearish tendency in the market. RSI has pulled out of the neutral zone to the downside, and momentum is down to the 100-base line. Likewise, the MACD histogram is dipping below zero, prompting the signal line to fall toward zero as well.
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