Nice bearish set-up in AUD/CAD

Looking into the daily and weekly charts for AUD/CAD.

Source: Bloomberg

Daily chart:

Through clear support. Rallies into 0.9300 should be met with a wall of new supply. Therefore, shorts look compelling here. Stops could be placed in two steps:

  1. 0.9370
  2. 0.9411

Oil looks to have found somewhat of a bottom, which should help the CAD, while Aussie economics are not looking great right now. Employment data next week and China trade data are also likely catalysts.

Click to enlarge

Weekly chart:

Clearly through the neckline of a head and shoulders pattern – this targets 86c. The trade is to add to the short on a break of the July low.

Click to enlarge

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