AUDCAD is being rejected from the downtrend channel resistance
On the weekly AUDCAD chart, we can see that the pair has bounced off the downtrend long-term Andrew’s Pitchfork channel 0.8050 support line. We saw a perfect bounce off this support and the pair has gone for the upside channel resistance retest 0.9600 again. We are seeing rejection from this level and a break below 0.9400 to put the pair back in channel again.
On a H4 chart, we can see that the AUDCAD price action is within a medium-term downtrend Pitchfork channel and median line is now being broken 0.9360. This breakout of the median line is perfect for the short trade entries. You could go short here with the stop loss above 0.9360 to target 0.9000-0.9200 zone. Now only a break above 0.9370 will invalidate the downside extesnion.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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