AUDCAD has been oscillating within a broad range for several weeks, with the ceiling around the 0.9900 major psychological level continuing to hold firm against repeated tests.

Price has once again retreated from this range resistance, and the resulting selloff appears to be gathering momentum as the pair trades at 0.9887 and pressing lower.

The range support at the 0.9750 minor psychological mark is now the next key area to watch on the downside. A sustained move toward that level would represent a full range retracement, and the current price action suggests that sellers may have enough fuel to push there.

A break below that floor, on the other hand, could set off a more significant decline beyond the range boundaries.

The 100 SMA is still above the 200 SMA, which would ordinarily suggest that the path of least resistance is to the upside. However, the gap between the two indicators has been narrowing noticeably, hinting that bullish momentum is fading and a bearish crossover could be on the horizon.

Price has also slipped back below the 100 SMA, and both moving averages are converging just above current levels to reinforce the ceiling around 0.9890–0.9900.

Stochastic has rolled over sharply from the overbought zone and is heading lower with plenty of room to slide before reaching the oversold area. This suggests that bearish pressure could continue to build, keeping sellers in control for the near term.

RSI is also trending lower from elevated levels and has yet to approach the oversold region, which means there’s still ample downside room for price to follow suit. If the oscillators continue their descent without finding support, AUDCAD could make a steady move back toward the 0.9750 range floor.

The Aussie is under some selling pressure at the moment while traders brace for the CPI and jobs reports that could impact RBA policy expectations, while upbeat Canadian CPI has lifted the Loonie despite falling crude oil prices.