Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to decline inside the uniform Falling Wedge chart pattern which was recently identified by Autochartist on the daily charts. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the strong Initial Trend and Uniformity (both rated at the 7 bar level) and average Clarity (5 bars). AUD/CAD is expected to fall further inside this chart pattern – in line with the earlier breakout of the key support area shown below.

As can be seen from the daily AUD/CAD chart below, the price earlier broke through the key support area lying between the pivotal support level 0.9700 (which has been steadily reversing the pair in the last few weeks) and the support trendline of the daily up channel from September. This price area is acting as resistance zone after it was broken. The proximity of this resistance zone increases the probability AUD/CAD will continue to fall inside this Falling Wedge.

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