The 4-hour chart for AUD/CAD shows a well-respected bearish descending channel, where price action remains capped below a strong dynamic resistance. Price recently rejected a key resistance zone near 0.8900, signaling a potential continuation to the downside.
Key Observations:
Bearish Channel Intact: Price continues to respect the upper and lower bounds of the descending channel.
Key Resistance Rejection: The pair tested the 0.8900 resistance area and faced immediate rejection (highlighted in red), forming a lower high.
Break of Trendline: A rising trendline from the recent low has been broken, reinforcing bearish pressure.
Support Zone in Sight: If bearish momentum continues, the next major support lies around 0.8780 – 0.8800, offering a possible target area.
Short-term Setup: Minor upward retracement may retest the broken trendline, but unless 0.8900 is breached, the bias remains strongly bearish.
Conclusion:
AUD/CAD remains under bearish control within the descending channel. The recent rejection from the upper boundary and break of the rising trendline suggest a high-probability move toward the 0.8800 support zone. Traders should look for confirmation of lower highs or bearish engulfing patterns to position short.
Key Observations:
Bearish Channel Intact: Price continues to respect the upper and lower bounds of the descending channel.
Key Resistance Rejection: The pair tested the 0.8900 resistance area and faced immediate rejection (highlighted in red), forming a lower high.
Break of Trendline: A rising trendline from the recent low has been broken, reinforcing bearish pressure.
Support Zone in Sight: If bearish momentum continues, the next major support lies around 0.8780 – 0.8800, offering a possible target area.
Short-term Setup: Minor upward retracement may retest the broken trendline, but unless 0.8900 is breached, the bias remains strongly bearish.
Conclusion:
AUD/CAD remains under bearish control within the descending channel. The recent rejection from the upper boundary and break of the rising trendline suggest a high-probability move toward the 0.8800 support zone. Traders should look for confirmation of lower highs or bearish engulfing patterns to position short.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.