Technical pullbacks create great buying opportunities for AUDCAD

Following a strong late-September rally that peaked at 0.92303, the AUDCAD pair has entered a consolidation phase, hovering around 0.9215. This period of uncertainty is characterized by declining trading volumes and low volatility, suggesting that the uptrend may be overheating and could soon pause or pull back.

The technical picture supports this corrective scenario. The Stochastic indicator (5, 3, 3) is approaching overbought territory, with the %K line at 81 and the %D one at 66—levels that often precede a reversal. Meanwhile, the Chaikin Oscillator has been declining since its October 1 peak. Such positioning signals easing buying pressure and supports the case for an impending pair's correction.

The 20-day exponential moving average (EMA 20) at 0.91390 serves as dynamic support, a threshold that would come into focus if buyers fail to defend 0.91760. Breaching the strong resistance at the 0.92300 local high is unlikely without a new fundamental catalyst. 

Fundamentally, the Aussie lacks growth incentives beyond resilient gold prices. The Canadian dollar, on the other hand, is under pressure due to expectations that OPEC+ will boost its crude production in November. The anticipated oil surplus in the fourth quarter (Q4) of 2025 creates a bearish backdrop for the commodity-linked Loonie and fosters a constructive environment for the pair, increasing the likelihood that any corrective move will be shallow.

Consider the trading strategy down below:

Buy AUDCAD when the price goes down to 0.91760. Take profit: 0.92790. Stop loss: 0.91390.

The forecast is relevant between October 3 and October 10, 2025.