AUD/CAD 1H Chart: Pair breaches two-week channel
If looking at the pair’s movement in the long term, the Australian Dollar has been trading in a descending channel against the Loonie since late February. The upper boundary of this pattern was tested on November 2.
The pair subsequently edged lower—a move that resulted in the formation of another channel down. The Aussie was testing its upper boundary last week. However, solid Canadian GDP and employment data halted any attempts to remain near this area.
Given that the rate has initiated a new wave down, it is likely that it tries to approach the lower boundary of the medium channel located near the 0.9500/20 area within the following week.
However, traders might likewise see a minor correction north during the following day or two, setting the 200-, 100– and 55-hour SMAs as a possible area of resistance.
The pair subsequently edged lower—a move that resulted in the formation of another channel down. The Aussie was testing its upper boundary last week. However, solid Canadian GDP and employment data halted any attempts to remain near this area.
Given that the rate has initiated a new wave down, it is likely that it tries to approach the lower boundary of the medium channel located near the 0.9500/20 area within the following week.
However, traders might likewise see a minor correction north during the following day or two, setting the 200-, 100– and 55-hour SMAs as a possible area of resistance.