It is most likely a worn/blown seal, but it could be worse. Only way to know for sure is to pull the transmission out though. The A4LD is a computer-controlled automatic overdrive that is also a lighter duty variant of the already light-duty C3 automatic transmission from Ford. They are notoriously flimsy with even a hint of "spirited" driving, but will last a "little-old-lady" type driver roughly 100,000 before the big bang.
That said, I blew up the A4LD in my '88 Mustang LX 2.3 convertable in about two weeks after purchasing the car... but kept going (it was for in-town use and a backup vehicle only, as my sister had originally purchased it then abandoned it when every single trip she took in the car ended in disaster.) with just first and second gear for almost two years before I pulled the engine and
tranny and sold the car itself to a friend who's now transplanting her 5.0 into it.
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1976 Ford Mustang II Ghia: 302 with a 600cfm Edelbrock carb, Edelbrock Performer 289 intake, Dynomax Blackjack headers, 2.5" exhaust with Flowmaster Super 44s. RJS 11-gallon fuel cell, C4
tranny, chrome 16" pony wheels, fuzzy dice, brown vinyl half-top, and painted in the tackiest color ever (harvest gold, that's why I call it "The Goldenrod").
Also have a 2003 Dodge Ram (lightly modded daily driver/tow rig/office/dining room/home away from home/workshop... I call it "The Big Blue Dawg".)