AUDCAD is one of those pairs where it’s often best to trade in and out in rather quick succession. It has a habit of retracing its footsteps faster than most currency pairs.
After a rally that has consumed three straight days and 240 pips, the pair has formed a bearish pin bar on the 4 hour time frame. In addition, the pair carved out this bearish price action at the .9685 key level.
For now I’m going to stand aside to see how the next 4 hour candle closes at 5pm EST. With CAD on the way down we’ll need to see weakness in the Australian dollar in order for this setup to play out.
Key resistance resides at .9685 while support comes in at .9590. A 4 hour close below .9670 could be the ticket for the bears to get behind a move lower.