AUDCAD primed to test technical resistance one more time

The AUDCAD pair has been in a technical correction since October 29, after its sharp run-up. Sellers are now trying to claw back some of those recent gains, keeping the pressure on as investors head into Friday's trading session, with prices hovering around 0.91553.

This corrective phase plays out on the daily chart. The Stochastic Oscillator hit overbought territory on October 29 and has been rolling over since. The bearish crossover between %K and %D the next day confirmed the shift to a downtrend. Now, with both lines falling in the upper half of the neutral zone, it points to a correction that's still in play but not too severe yet. The bearish mood is also clear in the Chaikin Oscillator, which peaked on October 28 and has dropped into negative ground, showing that sellers are in control for some time.

Fundamentally, the Aussie has a decent floor under it. A surprisingly strong inflation report for the third quarter (Q3) has basically taken any chance of a rate cut from the Reserve Bank of Australia (RBA) off the table for this year. Such interest rate advantage may help the AUD find its feet again once this technical selling runs its course.

On the other side, the loonie isn't getting much of a boost from its own regulator. Even though the Bank of Canada (BOC) reduced borrowing costs to 2.25%, it suggested the easing cycle might be wrapping up. The currency is still being weighed down by all the uncertainty in the oil market and broader trade concerns.

Therefore, despite the short-term outlook being weak, the mix of improving fundamentals for the Australian dollar and ongoing pressures on its Canadian counterpart tells a conflicting story. This current dip seems to be a healthy breather within a larger uptrend, rather than the start of a major drop. The real test will be how the price behaves as it approaches the 0.9140 support—that's the key to figuring out the next big move.

Take into account the trading plan down below:

Buy AUDCAD in the range of 0.91400–0.91700. Take profit: 0.92150. Stop loss: 0.91230.

This forecast is relevant from October 31 to November 7, 2025.