FX.co ★ AUDCAD Bearish Continuation | 14th Dec 2021

Price is abiding to the descending channel on the daily, signifying overall bearish momentum. We can expect price to drop from 1st Resistance in line with 50% Fibonacci retracement, 78.6% Fibonacci projection and graphical overlap resistance towards 1st Support in line with previous swing low and 100% Fibonacci projection. Our bearish bias is further supported by a stochastic indicator where the %K line is at the resistance level.

Trading Recommendation

Entry:0.91355

Reason for Entry:

50% Fibonacci retracement, 78.6% Fibonacci projection and graphical overlap resistance

Take Profit: 0.89779

Reason for Take Profit:

previous swing low and 100% Fibonacci projection

Stop Loss: 0.92059

Reason for Stop Loss:

61.8% Fibonacci retracement and 100% Fibonacci projection