By: Dima Chernovolov
AUD/CAD continues to fall inside the clear 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the sharp of the slow Initial Trend (9 bars), average Uniformity (5 bars) and higher Clarity (6 bars). AUD/CAD is expected to fall further inside this Down Channel .
As can be seen from the daily AUD/CAD chart below – the price earlier broke through the support area located between the key support level 0.9340 (which reversed the price multiple times in March), 50% Fibonacci correction of the upward impulse from last month and the support trendline from January. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability AUD/CAD will continue to fall further inside this Down Channel.