AUD/CAD Price Analysis: Bears seeking downside extension
|- AUD/CAD is in the throes of a downside continuation.
- The bears need to break current support on the lower time frames.
AUD/CAD has started to form a top on the daily chart and the bears are looking for an optimal entry point to ride the cross lower.
The following is a top-down analysis that illustrates the bearish bias on the charts.
Monthly chart
The monthly chart is in the process of correcting the prior bullish impulse and prior resistance is compelling.
Weekly chart
The weekly bull rejection was not enough to penetrate the upside fully and the bears on the lower time frames may wish to take advantage of a lack of follow-through and buy orders.
Daily chart
The price is submerged below the 21-SMA and Fibonacci retracements which leaves scope for a test of the recent lows and a target to the prior resistance structure looking left.
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