Since the beginning of the year, the currency pair gained more than 3.0% but last week ended flat with a minor gain of 0.3% and is in a bullish phase since mid-February. Last week the AUDCAD initially rallied with a wide range but found enough selling pressure to trim most of its gains and closed near the low of the week, however managed to close within the previous week range, which suggests being slightly on the bearish side of neutral. The stochastic is showing a overbought market and is setting lower highs while price is making higher highs, signs of a potential bearish divergence. Expecting a downward move to the lower end of a weekly resistance at 0.9940 on a break below the previous week low at 1.0063 (scenario 1) however a bounce from lower end of a weekly resistance at 0.9940 may push the currency pair back up to the higher end of a weekly resistance at 1.0081 (scenario 2). Advertisements