AUD/CAD 4H Chart: Channel Down

There are no supports left until 0.97 to provide any boost to the bulls in the days to come. The closest pivot area, namely the weekly and monthly S1s, are located already below the lower edge of the channel. At the same time, it is the first and foremost guarantee that the Aussie will avoid an easy failure here. Although the technical indicators on all time frames are signalling to the South at the moment, the base case continues to imply a rebound from 0.97. A fresh leg up is expected to extend beyond the monthly pivot point and reach the 200-hour SMA at 0.9918. In the long run AUD/CAD is, in turn, likely to be pressured down, despite the fact that the SWFX sentiment is largely mixed (52% long).