AUD/CAD Down 28 Pips; Eyes 20 and 50 Day Averages

AUD/CAD Price Recap

AUD/CAD is down 28 pips (0.3%) since yesterday (with its current price near 0.9076), marking the 2nd day in a row a decline has happened. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 4.5% from the day prior, but down 22.99% from the same day the week before. Relative to other instruments in the Forex asset class, AUD/CAD ranked 21st yesterday in terms of percentage price change. The price chart of AUD/CAD below illustrates.

AUD/CAD Technical Analysis

The first thing we should note is that AUD/CAD is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 11.4 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Related to the moving average crossover is that AUD/CAD may have broken its trend on the 14 day basis, as the trend’s momentum appears to be slowing down. 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 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone down 17 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDCAD, with 9 buy signals on our radar and 10 sell signals. This imputes a buy/sell ratio of 0.9, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we ; below is a short snippet from it to give you a taste.

long from fib levels to descending tl