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AUD/CAD has formed a Channel Down pattern on 1H chart. The pattern has 46% quality and 100% magnitude in the 363-bar period.
The pattern started when the pair bounced from 1.0498 and started to depreciate after hitting 1.0601. Currently the pair is trading at 1.0271. The Stochastic indicator sends a buy signal on 1D outlook indicating we should see price correction after prolonged depreciation period. Long traders could set the first target at daily pivot (PP)/ recent pattern's support test level at 1.0292/94. If the pair breaches these levels next targets could be at daily pivot (R1) at 1.0324 and 200 day SMA at 1.0345.
Technical indicators on aggregate point at depreciation of the pair on 1H and 1D time horizons while almost all of the indicators give sell signals on 4H outlook. The SWFX market sentiment shows that 74% of traders currently hold short positions on the pair expecting its further depreciation. Short traders could set their targets at daily pivots at 1.0233 (S1), 1.0200 (S2) and 1.0142 (S3). The latter is also the pattern's lower limit.
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