Following a reversal from the upper boundary of a junior descending channel on June 22, the Aussie has been trading in a two-month descending channel against the Canadian Dollar.
During this period of decline, the exchange rate has reached a two-year low level at 0.9421. However, the pair has pulled back from the two years low and is gradually gaining strength.
Technical indicators flash strong sell signals on both the daily and the weekly time frames. This bearish signal could suggest that the 55-hour simple moving average could pressure the Australian Dollar further south during the following trading sessions.
