AUD/CAD 3 Day Up Streak Broken, in a Downtrend Over Past 30 Days; Nears 20 Day Moving Average

AUD/CAD Price Recap

AUD/CAD is up 16 pips (0.18%) since yesterday (with its current price near 0.892), marking the 2nd day in a row it has gone up. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 11.26% from the day before — and down 27.5% from the same day the week before. Out of the 40 instruments in the Forex asset class, AUD/CAD ended up ranking 10th for the day in terms of day-over-day price change. The price chart of AUD/CAD below illustrates.

AUD/CAD Technical Analysis

Coming into today 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 17 pips away. 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 10 days AUD/CAD’s price has gone up 6 them.

A final note on correlations: over the past 7 days, AUD/USD has been the pair most correlated with AUD/CAD — a frequent scenario, considering AUD finds itself in both pairs. On the flip side, in terms of pairs with the least correlation to AUD/CAD, look no further than AUD/NZD for that answer.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDCAD, with 20 buy signals on our radar and 18 sell signals. This imputes a buy/sell ratio of 1.11, 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.

At the moment the market is in an upmovement, which is a parallel channel….We won’t trade if the market breaks the Parallel Channel under or above this point….We recommend to sell the breakout of the Parallel Channel when the market reaches the sell point!