AUDCAD - SHORT ENTRY

The AUDCAD pair is in a downtrend. The price retraced to a key level (0.92392-0.92651), which has served on multiple occasions as either support or resistance. Also, the price retraced and rejected from 78.6 FIB level, which serves as another confirmation of short bias.

If you want to take this trade, you can enter when the price rejects another time from the trendline or the horizontal resistance with your stop above the support zone or even above 0.93000 (previous lower high). It's much safer to put the SL at that level because the price might break the trendline and support and form a double top pattern at previous LH level, from which it can plummet down - this way you give your trade some room to breath and make sure you are not stopped out prematurely.

As a take profit level you can target the previous LL level (0.89095), -27.2% FIB, -61.8% FIB, or a much safer target - 0.89835, a lever which price reacted from a few times in the past.

Good luck!