AUDCAD shows signs of recovery as Canadian dollar experiences pressure

Following a five-day streak of declines, bears seem to be loosening their grip on the AUDCAD market. A short-term support area is forming around the 0.9070 level, with buyers activating near the lower boundary of the price channel. This could be a sign of a potential rebound.

The technical picture on the AUDCAD daily chart confirms a potential shift. The Stochastic Indicator (%K=19 and %D=25) is approaching overbought territory, signaling the end of sellers’ dominance and higher chances of an imminent upward reversal. The Chaikin Oscillator, despite still being negative, has slowed its descent, also suggesting the awakening of the bulls at current levels. Bollinger Bands are no different from other technical indicators, pointing to a temporary lull before new upward momentum. Furthermore, the price is now trading close to the lower limit at 0.90894, which is often a sign of a rebound.

From a fundamental perspective, the Australian dollar is primarily influenced by the domestic economy. The country’s labor market remains tight, with unemployment at 3.4% and annual wage growth at 4.3%. This leaves the Reserve Bank of Australia (RBA) no choice but to maintain its hawkish monetary policy stance. Rate cuts are subject to constant delays.

As for the Canadian dollar, the situation is not that clear-cut. On the one hand, the country’s inflation is declining way faster than forecast. The Consumer Price Index (CPI) was 2.2% in October. Thus, the Bank of Canada (BoC) is likely to take a pause. On the other hand, a potential resolution of geopolitical tensions in Eastern Europe could increase global oil supply. This is not good for the nation, whose economy is tied to energy exports. However, EU diplomats are skeptical about the peace plan working out, creating some uncertainty for the loonie.

Pay attention to the trading strategy down below:

Buy AUDCAD during a rebound from current levels and a confirmed surge above 0.90905. Take profit: 0.91445. Stop loss: 0.90510.

The forecast remains relevant between November 21 and November 28, 2025.