AUD/CAD has been consolidating in the second half of August after sliding from around 1.01 to about 0.9760.AUD/CAD 4H Chart 9/1(click to enlarge)Resistance around 0.99:- As we can see in the 4H chart, the market has flattened the bearish swing. - AUD/CAD has been consolidating with a resistance just below 0.99.- Note that around 0.99 is a support/resistance pivot zone. - Also, there is a 100-period simple moving average here.- Finally, the RSI is near 60. If the prevailing bearish momentum is to remain, the RSI should stay below 60, or turn down briefly after tagging 60. - The 4H chart also shows a bearish engulfing candle as an initial reaction to the above-mentioned resistance factors. Bearish scenario: - There is really no clear trend for AUD/CAD, so we should limit the bearish outlook.- The previous pivots at 0.98 and 0.9760 are viable and conservative targets respectively.- An aggressive target would be down to a key support/resistance pivot around 0.96 (see daily chart below). Breakout scenario:- Now if price breaks above 0.99, and the RSI pushes above 60, we are likely in a bullish continuation scenario.- In the bullish continuation scenario, I would first look for resistance in the 0.9970-1.00 area.- If price falls from this area, note that there would be a head and shoulder possibility in the daily chart, with the neckline at 0.9730-0.9760. . - If price can avoid coming back down to the neckline and anchor above 0.9870-0.99, then I would gain further confidence of upside risk towards the August high around 1.01 and maybe even the December 2015 high around 1.0165. AUD/CAD Daily Chart 9/1(click to enlarge)