AUDCAD uptrend broken, now expecting a move further down

The longer uptrend on AUDCAD was broken at the end of last week, after the pair tested the strong resistance level (visible on the Daily) and broke through the 1.0000 level quite easily. After a retest of that level, sellers got in control and pushed the price down. This provides us with a good opportunity to ride the newly formed trend.

I expect sellers to push the pair down further to the support area indicated on the chart, whereafter we'll probably see a rebound to test one of the resistance levels, either the 0.99670 level or even the 1.0000 level. I'll be looking at price action patterns and strong price reversal signals around these areas to indicate that the pair is ready for a move further down.

There's at least 2 TP levels, the first one being at the first support area and the second one being at the lower support level. Overall, this provides an excellent R/R of > 2.5, with potentially even more if TP2 gets hit as well.

Events to keep in mind are the RBA's meeting minutes report on Tuesday and the Canadian CPI announcements on Friday.

Good luck trading!

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