AUDCAD Wave Analysis

The Australian Dollar against the Canadian Dollar (AUD/CAD) has encountered strong selling pressure after failing to break above the major multi-month parity resistance level at 1.0000. According to technical wave analysis from FxPro, this critical ceiling previously halted the pair's advance during intermediate wave (3) in May, establishing it as a formidable structural barrier for market bulls. The recent downward reversal near parity coincided with the upper boundary of the weekly Bollinger Band, effectively ending the earlier intermediate impulse wave (5). Momentum indicators reinforce this bearish shift, as the weekly Stochastic oscillator currently signals overbought conditions, increasing the probability of continued downside pressure in the upcoming trading sessions. Given the confluence of technical resistance at 1.0000 and weakening upside momentum, the currency pair is projected to extend its downward correction. Analysts anticipate AUD/CAD to decline further toward its next key intermediate support level located around 0.9880, offering traders downside targets in the medium term.