Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the clear Rising Wedge chart pattern which was recently identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which reflects the slow Initial Trend (one bar), average Uniformity (5 bars) and strong Clarity (8 bars). AUD/CAD is expected to rise further inside this Rising Wedge in line with the earlier breakout of the resistance zone shown below.

As can be seen from the weekly AUD/CAD chart below, the price earlier broke through the resistance area lying between the resistance level 0.9800, 61.8% Fibonacci correction of the previous downward impulse from October and the resistance trendline of the weekly Falling Wedge from April. This price area is acting as support zone after it was broken. The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Rising Wedge.

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