This is more of a technical trade with the AUDCAD pair showing bearish divergence on the daily chart.

In addition, you can see the paid has hit this resistance level at least 3 times previously.

Sitting overbought and on resistance, this pair could be a reasonable risk reward short trade.

The only thing to watch is it recently took out the previous resistance level around the 0.9600 level, therefore it is currenlty hitting a higher high, plus rebounding from a recent higher low.

I believe we could see a pop higher above resistance, which could drive the risk reward opportunity on this trade even higher.

Monitor this position closely, especially if blue sky territory brings in the breakout bulls.

AUDCAD showing bearish divergence & on resistance

Dec 16 2020

Stop Loss -0.25%

Holding time 10hr

0.96880

Entry price

0.97120

Stop loss price

1