AUDCAD Buyers Waiting At .9750 Range Support?

AUDCAD has been oscillating within a range on the short-term time frame, with the pair now making its way down to test the floor of the formation around the 0.9750 minor psychological level.

A break below this support could confirm a range breakdown and set off a measured move selloff of the same height as the formation, opening the door for a drop towards the 0.9600 region or lower.

If the 0.97500 level manages to hold as a floor, however, AUD/CAD could stage a recovery back towards the range highs around 0.9900-0.9950. The midpoint of the range near 0.9825 could act as an interim hurdle before the pair can make a full run at the top of the formation.

The 100 SMA has crossed below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. Price has also fallen beneath both moving averages, and these could now hold as dynamic resistance on any corrective bounces, keeping sellers in the driver’s seat for now.

Stochastic has bounced off the oversold area and is turning higher, reflecting a return in bullish pressure in the near term. The oscillator still has some room to climb before reaching the overbought zone, which means a relief bounce could carry the pair back towards the midrange area or the moving averages before sellers look to step back in.

RSI, on the other hand, is still hovering close to the oversold region and appears to be attempting a turn to the upside. If the oscillator follows through on this recovery, it could give the pair enough momentum to stage a more meaningful bounce. Failure to sustain the move higher, though, would suggest that sellers are not done yet and that a breakdown below 0.9750 remains on the table.