AUD/CAD to slip another cent on a break under 0.8910 – Scotiabank

AUD/CAD slide extends back to early 2022 low at 0.8910. A break below here would open up additional losses toward low-0.88s, economists at Scotiabank report.

AUD/CAD in a very difficult position on the chart

“The Jan low at 0.8910 clearly offers AUD/CAD some support but the heavy selling in the cross in March and April suggest downside risks here remain significant, the more so as trend signals are aligned bearishly for the AUD across short, medium and long term DMI oscillators.” 

“A break under 0.8910 could see AUD/CAD slip another cent to the low 0.88s (61.8% retracement of the 2020/21 rebound at 0.8820). 

“We do think the AUD is looking oversold but absent any signs of a rebound developing against the low 0.89s, lower levels look likely.”