Potential AUDCAD Daily Forex Setup

Hello all I hope you are having a relaxing and restful weekend.

I was looking at my charts this evening and just wanted to throw up a quick post regarding the AudCad currency pair on the daily chart. As you can see on the chart below the AudCad has been in a fairly strong down move for about a month now. I think it is safe to say the current trend is down so personally I would only be looking to short this pair until there is a clear indication that the trend has reversed.

You will also see on my chart below that I have marked the level around 1.0421 as a key level. This level has acted as both resistance and support in the past. So I will be watching this pair closely as it approaches this resistance level in the upcoming days. Assuming price actually continues higher and reaches this resistance zone I will be looking for some clues that price may provide as to whether this pair is continue up and break past this level, or whether the bulls will have lost steam and price will continue back down with the trend.

These clues are based on price action and may include pin bars, dojis, a bearinsh engulfing bar, or price may just possibly consolidate for a while around this zone.

It will be interesting to see what happens with this pair over the next few days and I will do my best to do a follow up post if a trade signal materializes for us!

Well that is all for now. If you enjoyed this post I encourage you to comment, share and like 🙂

Cheers
20130503_AudCad

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