© Dukascopy Bank SA
Initially, we considered that AUD/CAD is in the process of forming a bullish channel. However, instead of extending the rally up to the monthly R2 at 1.0244, the currency pair stopped advancement much earlier, meaning the upper trend-line is less sloped than the lower one.
Consequently, there is a good chance that the Aussie will now fall down to a formidable support zone at 0.9881, which consists of the up-trend, 200-period SMA and the monthly pivot point. Then the price could try to erode it, as implied by the rising wedge, but the market is currently neutral towards the pair—54% of open positions are long and 46% are short.
© Dukascopy Bank SA