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.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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