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AUDCAD trade ideas

AUDCAD – breakout and short likely .. the week of 26 MayThe support zone between 0.8890 and 0.8870 has been holding firm, while this pair has been making lower highs for the past couple of weeks. Price is now below the 50ema too. The most recent bounce from the zone looks rather weak and IMO a breakout to the downside may happen in the next few days. I see an initial target around 0.8730 with the potential to go much lower. Anything can happen in the markets, so best to monitor price action on lower time frames to look for bearish evidence before committing to a trade. This is not a trade recommendation; it’s merely my own analysis. Trading carries a high level of risk so carefully managing your capital and risk is important. If you like my idea, please give a “boost” and follow me to get even more. It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong – George Soros
Short
by Trading_Vista
AUDCAD 1H Short 📕 Smart Money Trade Breakdown 🔻 AUDCAD 1H Short Setup This is a short position on AUDCAD, entered at 0.88940, after price tapped into a bearish FVG (Fair Value Gap) and failed to break above the internal BOS. 📉 Entry: 0.88940 🎯 Take Profit: 0.88190 🛡️ Stop Loss: 0.89191 ⚖️ Risk-Reward Ratio: ~1:3 🔍 Key Confluences: Price tapped into FVG supply zone Strong internal BOS confirms bearish intent Clean trendline and liquidity sweep just before entry Price rejecting lower high structure This setup leverages institutional concepts like FVG + BOS rejection with proper RR alignment. ⚠️ Disclaimer: For educational purposes only. Trade with a clear risk management plan.
Short
by sksglobaltraders24on
AUD/CAD SENDS CLEAR BULLISH SIGNALS|LONG Hello, Friends! AUD-CAD downtrend evident from the last 1W red candle makes longs trades more risky, but the current set-up targeting 0.893 area still presents a good opportunity for us to buy the pair because the support line is nearby and the BB lower band is close which indicates the oversold state of the AUD/CAD pair. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Long
by EliteTradingSignals
1
AUDCADAUD/CAD 10-Year Bond Yield Differential and Carry Trade Advantage from technically perspective .the current10year bond yields of Australia as at Friday close of the market is 4.39% approx. while that of Canada is 3.35% .the spread is 1.044% reinforcing the AUD's yield advantage. interest rate differential: +1.04% (AUD over CAD) Carry Trade Advantage The 1.04% yield spread makes AUD/CAD attractive for carry traders, who borrow low-yielding CAD to invest in higher-yielding AUD assets. For example: Borrowing CAD at 3.35% and investing in AUD bonds at 4.39% generates a 1.04% annualized return (before currency fluctuations). This spread is modest compared to pairs like GBP/JPY (3.21%), but still offers opportunities in stable market conditions. Key Drivers of the Yield Differential Australia (AUD): The Reserve Bank of Australia (RBA) cut rates to 3.85% in May 2025, citing progress on inflation and global uncertainty from US tariffs. Despite the cut, Australia’s 10-year yield remains elevated due to strong commodity exports (e.g., iron ore) and resilient growth. Canada (CAD): The Bank of Canada (BoC) maintains a restrictive policy stance, with inflation pressures persisting (trimmed-mean CPI at 3.1% in April). Canada’s 10-year yield has risen to a four-month high (3.35%) but lags behind AUD due to weaker commodity diversification and trade risks with the US. Risks to the Carry Trade Currency Volatility: AUD/CAD is in a bearish technical trend, with key support at 0.8953 and resistance at 0.9080. A breakdown could erase carry gains. US-China trade tensions and Trump’s proposed tariffs on allies like Canada add volatility, potentially weakening AUD further. Policy Shifts: The RBA may ease further if global growth slows, narrowing the yield spread. The BoC’s hawkish tilt could strengthen CAD if inflation remains sticky. Commodity Prices: AUD relies on iron ore and coal exports, while CAD is tied to oil. Diverging commodity trends could offset yield advantages. Conclusion The 1.04% yield differential provides a modest carry trade advantage for AUD/CAD. However, traders must weigh this against: Bearish technical trends threatening AUD depreciation. Geopolitical risks (US tariffs, China slowdown) impacting both currencies. Divergent central bank policies (RBA easing vs. BoC holding). While the yield spread supports long AUD/CAD positions, risk management (e.g., hedging currency exposure) is critical to preserve returns in volatile conditions. The interest rate differential (IRD) between Australia and Canada is critically important for traders considering long or short positions on the AUD/CAD currency pair because it directly influences capital flows, currency demand, and the profitability of carry trades. Here’s why: 1. Driver of Currency Demand and Supply When Australian interest rates are higher than Canadian rates, Australian assets (like government bonds) become more attractive to investors seeking higher returns. This increases demand for the Australian dollar (AUD) as foreign investors buy AUD to invest in these assets. Conversely, if Canadian rates rise relative to Australian rates, the Canadian dollar (CAD) gains appeal, increasing demand for CAD and potentially weakening AUD/CAD. Thus, the IRD affects the flow of funds between the two countries, impacting the exchange rate. 2. Impact on Carry Trade Strategy The carry trade involves borrowing in a currency with a lower interest rate and investing in a currency with a higher interest rate to profit from the yield difference. For AUD/CAD, if Australia’s interest rates exceed Canada’s, traders can borrow CAD at lower rates and invest in AUD assets, earning the positive interest rate differential as profit (known as rollover or swap gains). This makes long AUD/CAD positions attractive when the IRD is positive. Conversely, a negative IRD discourages such trades or favors short AUD/CAD positions. 3. Exchange Rate Movements Changes in the IRD signal shifts in monetary policy, economic strength, and inflation expectations, all of which influence exchange rates. For example, if the Reserve Bank of Australia (RBA) raises rates or signals tightening while the Bank of Canada (BoC) remains steady or cuts rates, the IRD widens, typically leading to AUD appreciation against CAD. Traders use IRD as a fundamental indicator to anticipate currency appreciation or depreciation. 4. Risk and Market Sentiment Considerations While IRD is a key factor, traders also consider risks such as geopolitical events, commodity price fluctuations (e.g., oil for Canada, iron ore for Australia), and overall market volatility. A favorable IRD can be offset by adverse risk factors, so traders combine IRD analysis with other economic and technical indicators. above all never forget market structure while making critical trade decision.
Short
by Shavyfxhub
3
AUDCAD Shorting OpportunityHi traders, I want to highlight a shorting opportunity for AUDCAD that seems well-suited for medium to long-term traders. Earlier in April, this pair broke a significant support level that had been established throughout 2024. For any breakout to follow through, we typically see the price revisit the rising trend line, which is currently acting as resistance. The combination of the round number at 0.90 and strong resistance above makes this pair a compelling candidate for a drop. The risk-to-reward ratio is 1 to 2, and please note that the pair recently reached just under 10 pips away from the round number at 0.90. Trading Setup: - Entry: 0.8962 - Stop Loss (SL): 0.9139 - Take Profit (PT): 0.8609 I wish you all the best and encourage you to check out my three previous calls on USD pairs that I’ve attached to this post. Happy trading! Ehsan
Short
by khansalarehsan
2
IT'S TIME AUDCAD - SHORT FORECAST Q2 W21 D23 Y25AUDCAD SHORT FORECAST Q2 W21 D23 Y25 NOW IS THE TIME! POI's are approaching. Await a turn around in price action at those points of interest & get your short shorts ready! Professional Risk Managers👋 Welcome back to another FRGNT chart update📈 Diving into some Forex setups using predominantly higher time frame order blocks alongside confirmation breaks of structure. Let’s see what price action is telling us today! 💡Here are some trade confluences📝 ✅ Weekly order block ✅ Intraday 15 order block ✅Tokyo ranges to be filled ✅ Weekly 50 EMA ✅ Daily 50 EMA ✅ 4 hour 50 EMA 🔑 Remember, to participate in trading comes always with a degree of risk, therefore as professional risk managers it remains vital that we stick to our risk management plan as well as our trading strategies. 📈The rest, we leave to the balance of probabilities. 💡Fail to plan. Plan to fail. 🏆It has always been that simple. ❤️Good luck with your trading journey, I shall see you at the very top. 🎯Trade consistent, FRGNT X
Short
by JCFRGNT
AUD/CAD: Ducks in a Row for a Drop Below .8880?The ducks look to be lining up for AUD/CAD downside. It was comprehensively rejected at the 200DMA a fortnight ago, followed by wedge break on Tuesday before sliding below the 50DMA on Thursday. It now sits perched on .8880, a level it attracted buying from earlier this month. With RSI (14) sub-50 and MACD crossing over from above, momentum signals are shifting neutral to moderately bearish, favouring downside. With both moving averages trending lower, it reinforces the bearish picture. If AUD/CAD breaks beneath .8880, considering initiating shorts targeting a return to support at .8800. A stop above .8880 would provide protection against reversal. Should it hold .8880, the bearish backdrop suggests there are better setups to consider than flipping the trade and going long. Good luck! DS
Short
by FOREXcom
1
AUDCAD re-entry DocumentationRe-entry on my Monday trade as no confluence was broken; Market structure bearish on HTFs DW Entry at Both Daily and Weekly AOi Weekly Rejection at AOi Previous Structure point Weekly Daily Rejection at AOi Previous Structure point Daily Around Psychological Level 0.89500 H4 EMA retest H4 Candlestick rejection Levels 5.21 Entry 100% REMEMBER : Trading is a Game Of Probability : Manage Your Risk : Be Patient : Every Moment Is Unique : Rinse, Wash, Repeat! : Christ is King.
Short
by mobbie_zw
ALL WE NEED IS A PULL BACK.AUDCAD SHORT FORECAST Q2 W21 D22 Y25ALL WE NEED IS A PULL BACK AUDCAD SHORT FORECAST Q2 W21 D22 Y25 Professional Risk Managers👋 Welcome back to another FRGNT chart update📈 Diving into some Forex setups using predominantly higher time frame order blocks alongside confirmation breaks of structure. Let’s see what price action is telling us today! 💡Here are some trade confluences📝 ✅ Weekly order block ✅ Intraday 15 order block ✅Tokyo ranges to be filled ✅ Weekly 50 EMA 🔑 Remember, to participate in trading comes always with a degree of risk, therefore as professional risk managers it remains vital that we stick to our risk management plan as well as our trading strategies. 📈The rest, we leave to the balance of probabilities. 💡Fail to plan. Plan to fail. 🏆It has always been that simple. ❤️Good luck with your trading journey, I shall see you at the very top. 🎯Trade consistent, FRGNT X
Short
by JCFRGNT
AUDCAD Approaching a Breakout Amid RBA Rate CutAUDCAD Approaching a Breakout Amid RBA Rate Cut AUDCAD is nearing a breakout from a larger triangle pattern. In the past few hours, the pair dropped nearly 50 pips following the Reserve Bank of Australia's (RBA) interest rate decision. The RBA cut rates by 25 bps , bringing them down to 3.85% from 4.1%. They also signaled a willingness to continue cutting if needed to support the economy. This marks the first rate cut in a long time where the RBA has openly backed a rate-cutting cycle, leading to a mild sell-off in AUD pairs. AUDCAD could decline further in the coming hours as the US market reacts to the news. You may find more details in the chart! Thank you and Good Luck! ❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️ Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Short
by KlejdiCuni
3
HUGE RETURNS PENDING! AUDCAD SHORT FORECAST Q2 W21 D21 Y25HUGE RETURNS PENDING! AUDCAD SHORT FORECAST Q2 W21 D21 Y25 Professional Risk Managers👋 Welcome back to another FRGNT chart update📈 Diving into some Forex setups using predominantly higher time frame order blocks alongside confirmation breaks of structure. Let’s see what price action is telling us today! 💡Here are some trade confluences📝 ✅ Weekly order block ✅ Intraday 15 order block ✅Tokyo ranges to be filled ✅ Weekly 50 EMA 🔑 Remember, to participate in trading comes always with a degree of risk, therefore as professional risk managers it remains vital that we stick to our risk management plan as well as our trading strategies. 📈The rest, we leave to the balance of probabilities. 💡Fail to plan. Plan to fail. 🏆It has always been that simple. ❤️Good luck with your trading journey, I shall see you at the very top. 🎯Trade consistent, FRGNT X
Short
by JCFRGNT