AUD/CAD - Possible short

FX:AUDCAD   Australian Dollar/Canadian Dollar
Once again price is testing the upper resistance trendline (red) of this bearish channel which started back in June. Yesterday we closed the gap (circled).

This is also a weekly resistance level so it is likely we could have a very nice short opportunity here with a target of the lower supportive trendline (green) around the 0.90500 price level.

We did get some support around the 0.92250 price level but going by the weekly it is irrelevant.

We will have to see what kind of reaction we get from this resistance. A rejection candle close for the day and week would be a good indicator to enter short on this pair.
Comment: Very negative data released today for CAD. That is the reason for the strong rally. AUD is weak in general so this trade still may be viable. There is quite a lot of resistance above so this could possibly turn out to be a fakeout. More big data next Wednesday for CAD with the BoC Rate Statement AND the Overnight Rate with forecast HIKE! This hike could be what will take this market much much further below (bearish).


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