AUDCAD BEARISH SETUPThe 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.
