By: Dima Chernovolov
AUD/CAD continues to rise inside the clear Up Channel chart pattern was previously identified by Autochartist. Autochartist rates the Quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and substantial Clarity (9 bars). AUD/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area described below.
As can be seen from the daily AUD/CAD chart below, both of the connecting points of the lower trendline of this Up Channel formed when the price reversed up from the strong support zone lying between the pivotal support level 0.9960 (which also reversed the price in April), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from January. The last 2 upward reversals from this support zone created the 2 consecutive daily Japanese candlesticks reversal patterns Bullish Engulfing. The proximity of this support area adds to the probability Up Channel will continue to rise inside this Up Channel.
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