Daily Forex Update: AUD/CAD

By: Dima Chernovolov

AUD/CAD continues to rise inside the well-formed Rectangle chart pattern was previously identified by Autochartist on the daily charts. Autochartist measures the Quality of this Rectangle at the 7 bar level – which is the result of the sharp Initial Trend (8 bars), significant Uniformity (7 bars) and above-average Clarity (6 bars). AUD/CAD is expected to rise further inside this Rectangle – in line with the earlier upward reversal from the support zone described below.

As can be seen from the daily AUD/CAD chart below, price earlier reversed up from the support area located between the pivotal support level 0.9950 (low of the daily Hammer from April), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from January (high Initial Trend of this Rectangle reflects the sharpness of this price impulse). The proximity of this support area increases the probability AUD/CAD will continue to rise inside this Rectangle.

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