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AUD/CAD has formed a Descending Broadening Wedge pattern on 1H chart. The pattern has 50% quality and 100% magnitude in the 132-bar period.
The pattern started when the pair started depreciating from 1.06009. Currently the pair is trading at 1.0122. The gap between pattern's support and resistance widened by 97 pips in 100-bar period. Technical indicators on aggregate point at augmentation of the pair on 4H horizon and 1W time horizons. Long traders could set their targets at Fibonacci retracement (23.6% of move since 23rd of August)/daily pivot (PP) at 1.0145/1.0151 and Fibonacci retracement (38.2%)/daily pivot (R1) at 1.0199/1.0208.
Technical indicators on aggregate point at depreciation of the pair on 1D time horizon. In addition, the SWFX market sentiment shows that currently 53% or traders hold short positions on the pair expecting depreciation of the pair. Short traders could set their targets at daily pivots at 1.0119 (S1), 1.0071 (S2) and 1.0039 (S3). Pattern's low (5th of September) at 1.0056 should provide significant support for the pair as well.
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