Looks like AUD/CAD is ready to drop from a major resistance area!
Will the pair extend its downtrend?
I’m looking at the 15 minute chart for clues!
AUD/CAD 15-Minute Forex Planned by TV
Commodity currencies have been volatile lately thanks to weaker-than-expected Chinese data and growth concerns dampening risk appetite.
Fortunately for Canadian dollar buyers, the oil-related Canadian dollar is receiving some support from higher crude oil prices this week.
AUD/CAD, which was recording lower highs and lower lows, is now turning lower after failing to break the 0.9000 resistance on the 15-minute time frame.
why not? Apart from the key psychological level, 0.9000 area lines up with a descending resistance channel, 50% Fibonacci retracement, and the 100 and 200 SMA resistance levels on the chart.
Will AUD/CAD Extend Its Short-term Downtrend?
It’s possible. The relatively hawkish RBA meeting minutes published earlier today were not in favor of the oil-backed AUDCAD.
If today Canadian Consumer Price Index reports Surprise on the upside, then we could see bearish momentum for AUD/CAD momentum all the way to previous lows of 0.960.
But if today’s US retail sales data and other market themes encourage risk taking, the AUD could attract enough buyers and push AUD/CAD above the descending channel pattern on the chart.
I would consider trading the bullish breakout if Canadian inflation numbers encourage the BoC’s dovish outlook or if lower crude oil prices send the Canadian dollar too low.
For now, though, I’m looking to sell AUD/CAD to the former support area with stops just above the trendline resistance area.
Do you think that the AUD/CAD can maintain its bearish trend?
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