Down channel still in progress

FX:AUDCAD   Australian Dollar/Canadian Dollar
Is there a chance that the price will slide all the way down to the channel line for a nice rebound? This pair shows a clear classical picture of technical analysis . A well defined down trend after a triple top that has been broken to the upside just enough to get everybody enthusiastic about long positions. After missing to reach the top from the spring 2012 the down trend accelerated as we can see from the price behaviour in the past few weeks. Now, there is strong resistance around 1.02740 and it formed another down channel (see dotted lines). As it seems this will be the boundaries for the next few days and weeks, eventually reaching the lower channel line after it cleared support at 0.99521. But, I think that this level will not give way so easily as it has acted as support 3 times in the past. So, I expect the fight to be fought at this level with a rebound to at least to the dotted trendline which might act as new resistance for some time. It remains to be seen how the price behaves once it reaches these levels.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.