Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the clear 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and significant Clarity (7 bars). AUD/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area show below.

As can be seen from the daily AUD/CAD chart below, the bottom of this Down Channel formed when the pair reversed up with the daily Bullish Engulfing from the support area lying between the powerful support level 0.9700 (which has been reversing the price from September) and the lower daily Bollinger Band. The proximity of this support area adds to the likelihood AUD/CAD will continue to rise inside this Up Channel.

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