AUD/CAD has recently completed a strong trending phase, characterized by a well-defined upward channel with consistent expansions. The sequence of price action showed clear momentum as each retracement was absorbed and followed by renewed buying interest, maintaining structural order throughout the move.

However, the latest developments reflect a notable shift in behavior. After a prolonged climb, price is showing signs of losing momentum, with market structure shifts (MSS) indicating that control is gradually transitioning. This suggests that the market is entering a phase of rebalancing, where prior bullish momentum may give way to corrective activity.

The projection implies that the pair could be preparing for a deeper adjustment, where short-term liquidity cycles reset positioning before a more sustainable trend emerges. This type of rotation is natural after extended directional moves and often signals the beginning of a new phase rather than immediate continuation.

Overall, AUD/CAD is transitioning from strength into a corrective cycle. While the broader market has proven its ability to trend effectively, near-term behavior suggests that the focus will be on how efficiently the market absorbs this correction before defining the next directional phase.