AUD/CAD set to resume lower

The AUD/CAD has been trending lower on the back of a dovish RBA and not-so-dovish BOC. The downward trend may have resumed following yesterday's price candle:

Key technical points

  • Price has been making lower lows and lower highs
  • On Wednesday, price formed an inverted hammer candle off the bear trend
  • The hammer candle suggests sellers may have returned.
  • Resistance is at around 0.8920, the head of the inverted hammer candle
  • Support seen around 0.8850, but given the bearish price structure this level could break
  • Bearish idea would become invalidated upon a potential break above inverted hammer candle around 0.8960.

Overall, the AUD/CAD looks bearish and wouldn't be surprised to see new lows on the year on this pair. However, a potential break above 0.8960 could lead to a short squeeze towards stronger levels of resistance.

Trading leveraged products such as FX, CFDs and Spread Bets carry a high level of risk which means you could lose your capital and is therefore not suitable for all investors. All of this website’s contents and information provided by Fawad Razaqzada elsewhere, such as on telegram and other social channels, including news, opinions, market analyses, trade ideas, trade signals or other information are solely provided as general market commentary, and do not constitute recommendation or investment advice. Please ensure you fully understand the risks involved by reading our disclaimer, terms and policies.

Leave a Comment

Your email address will not be published.