AUD/CAD continues to fall inside the clear 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 9-bar level – which is the result of the sharp Initial Trend (8 bars), strong Uniformity (8 bars) and near-maximum Clarity (10 bars). AUD/CAD is expected to fall further inside this chart pattern – in line with the earlier breakout of the powerful support level shown below.
As can be seen from the daily AUD/CAD chart below, price earlier broke the major, multi-month support level 0.9600 (which reversed the price with the daily Hammer in December) – which strengthened the bearish pressure on this currency pair.
The price level 0.9600 is acting as a strong resistance level after it was broken. The proximity of this resistance level increases the probability AUD/CAD will continue to fall inside this chart pattern.
