AUDCAD is slowly trending higher on its 4-hour time frame, just having bounced off the bottom of the range at the .9300 major psychological level.

A short-term double bottom pattern can be seen, indicating that further rallies towards the top of the channel at the .9600 major psychological level could take place.

For now, price is stalling at the mid-channel area of interest, with both stochastic and RSI indicating overdone conditions. The oscillators haven’t turned down from the overbought zone yet, which means that there may be a bit of buying pressure left for a move up to the channel resistance.

The 100 SMA is above the 200 SMA for now but the moving averages are edging closer together, perhaps getting ready for a downward crossover. If so, AUDCAD might make another test of the channel support and probably attempt to break lower.

Earlier this week, Australia printed a much stronger than expected jobs report for October. The economy added 58.6K jobs during the month, enough to bring the jobless rate down from 6.2% to 5.9%. However, analysts are treating the data with skepticism, as the ABS made previous adjustments to their seasonality calculations.

As for the Loonie, oil prices have been pushing the currency around these days. The latest US crude oil inventories report showed a buildup in stockpiles from 2.8M to 4.2M barrels, weighing on prices. 

There are no other reports lined up from both Australia and Canada for today, although the upcoming US retail sales release could impact the Loonie because of Canada’s close trade ties to the US.

By Kate Curtis from Trader’s Way