AUDCAD: Bearish Flag Signals Further Decline

AUDCAD has been consolidating within a well-defined bearish flag formation for the past two weeks, marked by small breakouts of key levels—a typical characteristic of this pattern.

This type of consolidation often acts as a continuation structure in a downtrend.

I anticipate that once the price breaks below the lower boundary of the flag and confirms the breakout through consolidation, the bearish scenario will likely play out.

Such a move would signal the market’s readiness to resume its downward trajectory, offering potential opportunities for short positions.