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AUD/CAD records first daily gain this week, limited below 1.0450


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FXstreet.com (San Francisco) - AUD/CAD closed the American session well off its lows on Thursday, finishing with its first daily gain of the week at 1.0432 from 1.0402 after bouncing from a 4-day low of 1.0380, recording a 0.3% gain on the day.

“The technical signals continue to lean towards the risk of a top/reversal forming in the mid 1.04 area, right around retracement resistance,” comments TD Securities.

TD also observes that Wednesday’s “shooting star” top “supports the weak-ish price action seen around this level in the past few days,” and that “more information is needed” but they believe “short-term price action supports our generally bearish bias here.”

AUD/CAD sits quietly around the 1.0435 mark this Friday in early Asia, with the May 26 peak at 1.0485 suggesting a level of selling interest should the pair break above immediate resistance in the 1.0450 area (29 June high). Support levels lie at 1.0406 (12 April high), 1.0377 (17 Aug high), and 1.0334 (15 Aug high).

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