The AUDCAD currency pair is approaching the upper boundary of the flat, which is confined between 0.88940 and 0.9000. With the price currently at 0.89845, bearish momentum is building near this psychologically important level, increasing the risk of a correction within the current uptrend.
Technical indicators support this scenario. The %K and %D lines of the Stochastic Oscillator (5, 3, 3, Simple) are trading at 64 and 73, respectively. After recently entering overbought territory, they have crossed over and turned downward, signaling a potential trend reversal.
The On-Balance Volume (OBV) provides further insight, showing a slowdown in the pace of volume growth. Although the OBV line continues to trend higher, its momentum has waned, suggesting bullish exhaustion and declining buying interest. The lack of a significant OBV acceleration near the key 0.9000 level raises the chance of a false breakout and subsequent pullback, especially if the price fails to consolidate above this threshold.
The EMA(50) at 0.89450 acts as initial support. In case of its breakdown, the next target will be 0.88940. A further decline is possible if bearish momentum intensifies.
Unless a clear catalyst emerges, such as unexpected statistics, sharp movements in related commodity markets, or sudden shifts in monetary policy, AUDCAD is likely to remain locked in the current range between 0.88940 and 0.90000.
Pay attention to the following trading strategy:
Sell AUDCAD at the current price, with Take profit placed at 0.88940 and Stop loss at 0.90000.
This forecast remains relevant from August 29 to September 5, 2025.
This content is for informational purposes only and is not intended to be investing advice.
