The AUDCAD pair is currently consolidating, caught between conflicting technical and fundamental drivers. Despite this short-lived uncertainty, the medium-term outlook favors the Australian dollar.
Technically, the market seems to be forming a potential reversal point. Since early October, the Chaikin Oscillator has been in the red, pointing to waning buying pressure and lower trading volumes. However, this bearish signal is countered by the Stochastic Indicator (%K=30, %D=38), which is nearing the oversold zone and suggests that selling momentum may be exhausting itself. This dynamic can be viewed as a correction within the larger uptrend that began when the pair encountered resistance at 0.92420. The Stochastic reading implies a local bottom is forming, preparing the pair for a new upward move.
From a fundamental perspective, the Australian dollar is well-positioned. While easing geopolitical tensions could reduce demand for gold and exert downward pressure on AUD, this is counterbalanced by persistent uncertainty surrounding US fiscal policy and more Federal Reserve monetary easing to be in play, both of which continue to bolster interest in precious metals.
In contrast, the Canadian dollar faces substantial headwinds. The Loonie is seeing challenges due to falling oil prices and worries about the country's trade relations with the United States. Given the Canadian economy's close ties to both the US and the energy sector, these factors are likely to have a significant impact on the currency in the international Forex market.
The pair is now holding firm above the 0.91770 and 0.91500 support levels, keeping the bullish target at 0.92420 in sight.
Keep in mind the trading plan outlined below:
Buy AUDCAD near 0.91770–0.91500. Take profit: 0.92420. Stop loss: 0.91000.
This forecast is relevant between October 10 and October 17, 2025.
This content is for informational purposes only and is not intended to be investing advice.
