AUD/CAD is trading in a descending channel. The pair was driven by strong downside momentum during its last wave until the bottom boundary of the channel was reached circa 0.9850.
Technical indicators demonstrate the prevalence of the bearish sentiment, that should resulted in a breakout of the above channel line. Nevertheless, the last wave south pushed these indicators into the strongly bearish territory from which a recovery is likely to occur. It is yet to be seen if this move is a short-term correction against the overall bearish trend or a beginning of a new up-wave.
In case bears still manage to take the upper hand for the upcoming hours, the pair is expected to halt at 0.9830, reinforced by the monthly and weekly S1s.