Looking on the 4hr timeframe, we can see the pair trading around a major resistance level. This is the first time that price has tested this region since it formed on the 24th Jan 2024.
The bias is mixed on this pair and it does have the ability to retrace much higher.
Retail trader sentiment
Platforms like DailyFX and IG report a majority of retail traders holding short positions (around 85% according to Myfxbook), but this doesn't represent the entire market.
Potential slowdown in the Chinese economy
China is a major importer of Australian iron ore, and a slowdown could decrease demand and weaken the AUD.
Rising interest rates in the US
The Federal Reserve is expected to continue raising interest rates in 2024, which could strengthen the USD and put downward pressure on the AUD/CAD pair.
We have high impact news tomorrow on Employment Change and Unemployment Rates out of Canada which can really help move this pair.
AUDCAD Short
Entry: 0.89070.
Stop: 0.89240
TP: 0.883
Trade safe, max 1% risk.
The bias is mixed on this pair and it does have the ability to retrace much higher.
Retail trader sentiment
Platforms like DailyFX and IG report a majority of retail traders holding short positions (around 85% according to Myfxbook), but this doesn't represent the entire market.
Potential slowdown in the Chinese economy
China is a major importer of Australian iron ore, and a slowdown could decrease demand and weaken the AUD.
Rising interest rates in the US
The Federal Reserve is expected to continue raising interest rates in 2024, which could strengthen the USD and put downward pressure on the AUD/CAD pair.
We have high impact news tomorrow on Employment Change and Unemployment Rates out of Canada which can really help move this pair.
AUDCAD Short
Entry: 0.89070.
Stop: 0.89240
TP: 0.883
Trade safe, max 1% risk.
Trade active
Trade closed: stop reached