AUD/CAD 2 Day Up Streak Ended, in a Downtrend Over Past 30 Days; Eyes 20 Day Average

AUD/CAD Price Recap

The choppiness in the recent daily price action of AUD/CAD continues; to start today, it comes in at a price of 0.8904 US dollars, up 24 pips (0.28%) since yesterday. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 3.75% from the day before — and down 11.2% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/CAD ended up ranking 5th for the day in terms of day-over-day price change. The price chart of AUD/CAD below illustrates.

AUD/CAD Technical Analysis

Notably, the current price of AUD/CAD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 37.7 pips away. Volatility for AUD/CAD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days AUD/CAD’s price has gone down 8 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDCAD, with 11 buy signals on our radar and 12 sell signals. This imputes a buy/sell ratio of 0.92, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The commitment of Traders Chicago Mercantile Exchange shows non commercial bank long contracts at 67.19k – versus 48.63k short positions….Since the end of January the long contracts changed minus (-9,106) meanwhile the short contracts added (6,921) short positions since the end of January….These positive figures might help CAD pick up despite the drop in Oil prices.