During the past month the rates of the AUD/CAD have been in the framework of 0.96-0.97 AUD. Volatility remains low, which is normal right after the New Year's holidays. Nevertheless, we can discuss the preconditions for the formation of a flat trend. At the same time, there are several factors that suggest a further strengthening of the Canadian dollar (CAD), therefore the downtrend can continue.
According to recent data, Canada's economy is at a good level and the future projections for Canada remain positive. In particular, in November for the first time in the last two years Canada achieved a positive trade balance and significantly increased the volume of its exports, while the volume of imports wasn't affected significantly. There are also good perspectives for the economy of the neighboring United States. In addition, the increase of oil prices has had a positive impact on the Canadian economy.
The Stochastics oscillator shows a signal to sell, as does the MACD. It confirms that the best solution now is to open short deals to get some profit in middle-term trading.
