AUD/CAD is in an interesting position. The pair produced a bullish engulfing candle on Friday. However, the candle closed within a horizontal resistance, which may make the price bearish. On the other hand, some sellers may wait for the price to make an extended bullish correction and produce a bearish engulfing candle at a down-trending trendline’s resistance to go short in the pair. The H4 chart looks bullish, but the H1 chart seems to be slightly bearish biased. Let us now have a look at these three charts.
Chart 1 AUD/CAD Daily Chart
The chart shows that the price had a rejection at a horizontal resistance and made a bearish move. It headed towards the North, had another rejection, and made a new lower low. Thus, a bearish trend line is in play, which may keep the sellers waiting for the price to go towards the trendline’s resistance and produce a bearish reversal candle to go short in the pair. However, the pair is trading at 0.95300. It is a flipped resistance. It may end up producing a bearish reversal candle. If that happens, the sellers may drive the price towards the South as well. The price may find its next support around 0.93000.
Chart 2 AUD/CAD H4 Chart
The chart shows that the price headed towards the North upon finding its support at 0.94350. On its way, it made a bullish breakout at 0.95175. The chart produced a bearish inside bar. As of writing, the pair has been roaming around the level. A bullish reversal candle at the level may push the price towards the North. It may find its next resistance around 0.95750. On the other hand, if the price makes a bearish breakout at the level, the price may find its next support around 0.94700.
Chart 3 AUD/CAD H1 Chart
The chart shows that the price after being bullish found its resistance. It produced a bearish engulfing candle and headed towards the South. The price may find its next support at 0.94850. A bearish breakout at the level may drive the price towards the level of 0.94700. On the contrary, if the level produces a bullish reversal candle, the price may head towards the North and find its next resistance around 0.95350.
The H4 chart looks bullish, but the H1 chart looks bearish. However, the daily chart’s trendline suggests the price may continue its bullish correction for a while, but the horizontal resistance suggests that it may make a bearish reversal right from there. Traders must be watchful and consider these factors before making entries in the pair.