AUDCAD | Inflation Supports CAD — Sell Setup Ahead?AUD/CADOANDA:AUDCADRayannsrRecent Canadian inflation data came in stronger than expected, with annual CPI accelerating to 3.2% from 2.8%, while monthly inflation also exceeded expectations. Higher inflation tends to reduce expectations for near-term easing and may provide short-term support to the Canadian Dollar. From a technical perspective, AUDCAD remains in a broader bullish structure, but price is now approaching an important decision zone. Price is currently sitting inside a strong supply and resistance area, where the market has rejected multiple times recently — making this region especially interesting to monitor. In addition, a bearish divergence appears to be developing, suggesting that bullish momentum may be weakening and adding further confluence to the bearish scenario. From here, two scenarios become relevant: → Bearish scenario: If resistance continues holding and sellers regain control, we may see a bearish rotation supported by stronger CAD sentiment. In this case, downside movement could extend toward the lower boundary of the bullish channel, and if broken downward, focus shifts toward the blue support zone. → Bullish scenario: If price manages to break above the current resistance with convincing momentum and sustain acceptance above the supply area, this may invalidate the short-term bearish thesis and support continuation of the broader bullish trend. For now, the key question is: Will CAD strength and divergence trigger a rejection, or will buyers break resistance and continue higher? This is a scenario-based analysis — not a prediction. Disclaimer: This analysis is shared for educational purposes only. It reflects personal market observations and does not constitute financial advice or a trading recommendation. Rayan Nasser #AUDCAD #AUD #CAD #Forex #TechnicalAnalysis #PriceAction #Inflation #Trading #RiskManagement