AUDCAD is gradually recovering after another decline to the 0.97650 support level, where buyers managed to take the initiative and pushed prices back to 0.98300. This is a perfect example of the market’s behavior in recent weeks, with the pair regularly jumping from the lower boundary of the current channel.
The technical setup confirms that a trend reversal is likely. Stochastic lines are both sitting in neutral territory, having just exited the overbought zone, with the fast line dipping below the slow one—a classic bullish crossover. Similar signals preceded upward moves in late May and mid-June, lending credibility to the current shift.
The chart structure tells the same story. The falling highs following the peak at 0.99572 are gradually converging with the rising lows from 0.97455, forming a typical symmetrical triangle. Meanwhile, the Average True Range (ATR) is declining, suggesting that both buyers and sellers are running on fumes and building momentum before shaking things up. The recent rebound from the triangle’s bottom, combined with a Stochastic reversal, points to a high probability of an ascending move toward the pattern’s peak.
The fundamental landscape remains mixed. However, in the short term, the current environment is likely to favor the Aussie. Following three consecutive hikes, the Reserve Bank of Australia (RBA) held interest rates at 4.35%. Its Canadian counterpart, in contrast, kept borrowing costs at 2.25% for five meetings in a row. That said, take into account Australia’s unexpected trade deficit in May—driven by lower gold and iron ore exports—along with weaker crude prices amid the Strait of Hormuz de-escalation. These factors could limit the scale of the pair’s further move.
Try out the trading strategy presented below:
Buying AUDCAD from current levels near 0.98300. Place Take profit at 0.99100. Set Stop loss at 0.97600.
This forecast remains relevant between July 3 and July 10, 2026.
This content is for informational purposes only and is not intended to be investing advice.
