AUDCAD: Connected bearish channels; downside risks remain
After placing the significant short-term peak of 1.0080, the AUDCAD pair has moved bearishly, creating a classical descending channel.
Adding Fibonacci Channel to the downside wave from the above-mentioned peak to the 0.9610 low shows that, prices are falling below 23.6% Fibonacci level.
In the interim, Aroon-trend indicator- is gradually turning into negativity, while Stochastic shows the ability to overlap bearishly.
Accordingly, we prefer shorts for AUDCAD, aiming to challenge 0.9500 psychological, while 0.9750 should act as a ceiling for bears.