This is our analysis of AUD/CAD on the daily and 4 Hour timeframes.
First off all we need to take note that the weekly candle has formed a solid bearish candle engulfing the previous bullish body.
Now taking a look at the daily chart below, we can see that price on the 3rd of January 2019 showed a large spike to the downside breaching past the support of 0.93000. Price has since retraced back to the upside and has shown several rejections off the area of 0.95700.
Price on friday closed at the support of 0.95000 with a close engulfing candlestick. We have an ascending channel marked on the chart which is clearer on the 4 hour chart below.
Going down to the 4 Hour Timeframe you can now see the ascending channel a lot clearer. Price has been within this ascending channel since early January.
Over the past week we seen price form a lower high at the daily 200EMA following a recent higher low. Price has now continued bearish from this rejection and is now back at the 0.95000 support. It is also key to note that price has broken the lower channel support to the downside.
We are now looking for price to continue bearish and break the 0.95000 support. We will scale down to the 2 Hour timeframe where we will look for a break retest of the 0.95000 support for a short with the target at the area of 0.94400.
Please remember that this is our view and you should trade alongside your own analysis.
James From Technical FX