Daily Forex Update: AUD/CAD
By: Dima Chernovolov
AUD/CAD continues to fall inside the clear Falling Wedge chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). AUD/CAD is expected to fall further inside this Falling Wedge in line with the earlier breakout of the support zone shown below.
As can be seen from the daily AUD/CAD chart below, the price earlier broke through the support area lying between the key support level 0.9870, support trendline of the daily up channel from December and the 50% Fibonacci correction of the upward impulse (1) from last year. This price zone is acting as resistance area after it was broken. The proximity of this resistance area increases the probability AUD/CAD will continue to fall inside this chart pattern.
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