The AUDCAD pair is currently stuck in neutral, consolidating after a strong bullish run that hit a wall on December 5, followed by a pullback. Prices are now fluctuating around 0.9175, reflecting a standoff between bulls and bears, as evidenced by a cluster of small-bodied candlesticks—a clear sign that neither side is seizing the initiative.
Technical indicators echo this stalemate and show no decisive trend. The Stochastic Oscillator has just made a bullish crossover with its %K and %D lines from bottom to top, yet it remains below the 50 level, indicating weak upward momentum and a lack of follow-through. Meanwhile, the Chaikin Oscillator has peaked and rolled over, suggesting that buying pressure is losing steam and selling is creeping in. The Commodity Channel Index (CCI), hovering around zero, adds to the tug-of-war, saying the market is neither overbought nor oversold.
Actually, the price is boxed in between key levels. Immediate resistance is holding firm at 0.9228, near the upper Bollinger Band, while support stands guard at 0.9148, along its midline. A clear break below this floor could set the stage for a move toward 0.9069. Conversely, a convincing push above resistance may reignite the bulls’ fire.
Fundamentally, the outlook for AUD is a mixed bag. The Reserve Bank of Australia (RBA) talked tough, ruling out further easing and even flirting with the idea of a future rate hike. Such comments have initially boosted the national currency. On the flip side, an unexpected dip in November employment has since taken the wind out of those steps, cooling monetary tightening speculation and leaving traders in limbo.
As for the Canadian dollar, the backdrop remains on solid ground. Oil prices are finding their feet again after a recent slump, and the domestic economy is proving its strength—highlighted by a surprise trade surplus in September and recovering trade flows following earlier tariff shocks. This underlying backing continues to tip the scales in favor of the loonie.
Pay attention to the trading plan down below:
Sell AUDCAD at the current price. Take profit: 0.91240. Stop loss: 0.92300.
This forecast is true from December 12 till December 19, 2025.
