AUDCAD To Break Lower?

AUDCAD has sat in a block of consolidation along the .9251-.9267 level support for the last month and half now. While the pair recently attempted to break higher, the rally was capped into a test of the bear channel top with price subsequently turning lower again. Price is now once more testing the support area and looks vulnerable to a break lower here. A daily close below the lower support level (.9251) will open the way for a test of .9267 initially and .9146 thereafter, with the bear channel low in that region also.

Key Data To Watch

Little on the slate this week. Overnight, weakness in Aussie retail sales underscored the message the RBA has been keen to deliver; that the economy still has a way to go. Fresh lockdowns there have caused issues and are weakening the near term outlook. The BOC on the other hand, has been more constructive in its outlook and with the vaccination programme there developing well, the near term outlook looks more positive.