By: Dima Chernovolov
AUD/CAD continues to fall inside the 4-hour Triangle chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the above-average Initial Trend (6 bars), higher Uniformity (7 bars) and lower Clarity (2 bars). AUD/CAD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily AUD/CAD chart below, the top of this Triangle formed when the pair reversed down with the daily candlesticks reversal pattern Shooting Star from the resistance area lying between the key resistance level 0.9020, upper daily Bollinger Band and the 61.8% Fibonacci correction of the earlier downward impulse wave (1). The proximity of this resistance area increases the probability AUD/CAD will continue to fall inside this Triangle.