By: Dima Chernovolov
AUD/CAD continues to fall inside the clear hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which reflects the slow Initial Trend (3 bars), medium Uniformity (5 bars) and high Clarity (10 bars). AUD/CAD expected to fall further inside this Down Channel – in line with the earlier downer reversal from the resistance area highlighted below.
As can be seen from the daily AUD/CAD chart below – the pair earlier reversed down from the resistance area lying between the key resistance level 0.9050 (which reversed the price with the daily Shooting Star candlesticks pattern in January) and the upper daily Bollinger Band. The proximity of this resistance zone as well as the overbought daily Stochastic increase the probability AUD/CAD will continue to fall inside this Down Channel.