Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to fall inside the Up Channel chart pattern which was recently identified by Autochartist on the hourly charts. Autochartist rates the Quality of this Up Channel at the 4 bar level – which reflects the slow Initial Trend (three bars), average Uniformity (5 bars) and higher Clarity (6 bars). AUD/CAD is expected to continue to fall toward the lower support trendline of this Up Channel.

As can be seen from the weekly AUD/CAD chart below, the top of this Up Channel formed when the pair reversed down from the powerful resistance level 1.0330 (which also reversed the pair with the weekly Japanese candlesticks reversal pattern Falling Star at the end of 2016). The proximity of this resistance level and the overbought reading on the weekly Stochastic indicator increase the probability AUD/CAD will continue to fall inside this hourly Up Channel.

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