Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to fall after the recent downward reversal from the top of the high-quality Up Channel chart pattern which was earlier identified by Autochartist on the daily charts. Autochartist rates the Quality of this chart pattern at the 9 bar level – which is the result of the maximum Initial Trend (10 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). AUD/USD is expected to fall further inside this Up Channel.

As is visible from the weekly AUD/CAD chart below, the top of this Up Channel formed when the pair reversed down from the resistance area located between the major resistance level 1.0320 (yearly high from 2014) and the upper weekly Bollinger Band. The downward reversal from this resistance area created the weekly Japanese candlesticks reversal pattern Falling Star. The proximity of this resistance area adds to the likelihood AUD/CAD will continue to fall inside this Up Channel.

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