AUDCAD is bouncing off the long-term area of interest previously marked, indicating that a continuation of the downtrend is underway. Using the Fibonacci extension tool shows how low price could go.

Price already seems to be bouncing off the 50% to 61.8% levels around the .9300 level but could still be poised to head further south to the 78.6% extension at the swing low. The full extension is at the .8950 minor psychological mark and might also be the target of sellers.

RSI is still pointing down to confirm that there’s some selling pressure left in the mix that could take the pair much lower from here. Stochastic is heading up to reflect some bullish momentum but is topping out without even reaching the overbought zone. This suggests that sellers might be eager to return and let the slide resume.

The 100 SMA is trying to cross above the longer-term 200 SMA, though, indicating that the path of least resistance might soon be to the upside. Both moving averages are holding as dynamic resistance for the time being as these line up with the area of interest or long-term support-turned-resistance at .9700.

The Loonie is drawing a strong boost from relatively higher crude oil prices. This is being driven by both the curb in supply from the OPEC output deal and the expected pickup in demand on speculations of more stimulus from China. Recall that the country recently printed downbeat data, spurring calls for fiscal or economic stimulus.

However, this could also prove beneficial for the Aussie since Australia is China’s top trade partner after all. Then again, the presence of risk aversion in global financial markets owing to all the uncertainties in play is also weighing on the higher-yielding currency. In terms of monetary policy, the BOC appears more inclined to hike again soon versus the RBA.