AUD/CAD - retesting double top neckline before move lower

AUD/CAD price action is currently in the process of testing a double top formation neckline. The double top for price is more clearly seen on the daily timeframe but the peaks have been pointed out on the image above. The fact that the double top has been created on the daily fills us with confidence that, for now, price has found an upper limit and is on it's way back down. Price closed below the neckline of this double top formation late last week, signalling a lower low. Today price is now retesting the neckline which we see as an excellent opportunity to enter short on this pair. Our price target will sit at the support level of 0.92371.

If price closes above the neckline on the daily time frame, this analysis will be invalidated.