Nice bearish set-up in AUD/CAD

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

Canada
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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.