AUDCAD: Connected bearish channels; downside risks remain

After placing the significant short-term peak of 1.0080, the AUDCAD pair has moved bearishly, creating a classical descending channel.

AUDCAD-15-05-FXCOMMENT

Adding Fibonacci Channel to the downside wave from the above-mentioned peak to the 0.9610 low shows that, prices are falling below 23.6% Fibonacci level.

In the interim, Aroon-trend indicator- is gradually turning into negativity, while Stochastic shows the ability to overlap bearishly.

Accordingly, we prefer shorts for AUDCAD, aiming to challenge 0.9500 psychological, while 0.9750 should act as a ceiling for bears.

support-Resistance

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

You have to be logged in to comment.