AUD/CAD today broke the “neckline” of the 30-minute Head and Shoulders chart pattern identified by Autochartist.

The Quality of this chart pattern is measured at 6 bar level – which is the consequence of the sharp Initial Trend (8 bars), low Uniformity (4 bars) and above-average Clarity (6 bars). This Breakout follows the previous strong downward price thrust (high Initial Trend value reflects the strength of this price impulse) from the round resistance level 1.0600. The “head” of this chart pattern (point A below) was formed when the pair reversed down from the 38,2% Fibonacci Correction of the proceeding downward price impulse, mentioned above.

AUD/CAD is expected to continue downward movement in the nearest time.

Forex Update

The following daily AUD/CAD chart highlights the aforementioned resistance levels: