Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
I love the way AUDCAD is setting up.
I wrote about this descending channel on August 20.
At the time, it was still unclear whether buyers were going to hold onto horizontal support at 0.8900 or fold.
And to be honest, we still don’t have a clear answer.
AUDCAD continues to chop around between 0.8900 and 0.9050/70.
But I’m still keeping a close eye on this one.
More specifically, I want to see AUDCAD buyers take out the 0.9050/70 region on a daily closing basis.
That means we need to see a 5 pm EST close above the area over the next few sessions.
Can they do it?
Feel free to guess, but like everything else, only time will tell.
One event that could force a break is Friday’s Canada employment figures.
The outcome is unknown, so a wait-and-see approach is best.
What I do know is the AUDCAD chart below offers some of the cleanest technicals around, if not the cleanest.
You can see how this descending channel has directed the price action since April.
Furthermore, all four horizontal areas below including 0.8900, 0.9050/70, 0.9230, and 0.9370 are well-defined.
So regardless of what happens at 0.9050/70 resistance, the AUDCAD is one I will keep on my watchlist.