AUDCAD stopped by resistance again, hard to ignore!

In our latest technical comment on the AUDCAD pair, we suggested potential downside move based on technical factors appeared over daily studies.

However, bulls attempted to take the pair higher and they succeeded in challenging the main resistance line of the descending channel set from 1.0800 regions.

audcad-20-05-2015-fxcomment

Actually, buyers have been thwarted at this resistance once again and thus, prices have moved again to the downside, influenced by the strength of the connected channels explained earlier.

Moreover, Stochastic is still negative and that is cannot be ignored as it may assist bears to breach the current tough obstacle at 0.9620.

Ultimately, we do believe that, AUDCAD may enter a free-fall zone if it succeeds in clearing 0.9620 and we hold onto our bearish outlook.

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.

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