Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to fall inside the uniform Falling Wedge chart pattern which was recently identified by Autochartist on the daily charts. Autochartist measures the quality of this Falling Wedge at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), significant Uniformity (7 bars) and lower Clarity (one bar). AUD/CAD is expected to fall further inside this Falling Wedge – in line with the strong downtrend visible on the second chart below.

As can be seen from the daily AUD/CAD chart below, the price today reversed down from the resistance area lying between the resistance level 0.9820, resistance trendline of this Falling Wedge and the 50% Fibonacci correction of the downward price impulse from September. The proximity of this resistance zone and the strength of the daily downtrend both increase the probability AUD/CAD will continue to fall inside this chart pattern.

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