AUD/CAD Daily outlook – 11 January
The Asian and much of the European session saw the Aussie gaining ground against the CAD on Tuesday. Late trading in the US saw the CAD strengthening and taking back its earlier losses.
The daily charts formed a long tailed bearish pin bar rejecting the strong resistance level sitting at 1.0500. The chart below shows the strength of the resistance area.
With the bearish outlook from Tuesday’s price action and the solid rejection of strong resistance we’ll be looking to short the pair with initial targets at 1.0420 and a stop just above yesterdays highs. Should we not see the bearish momentum we’re expecting and a push higher the next relevant area of resistance sits at 1.0664 which is the markets most recent highs.