Dukascopy Bank Team
Dukascopy Bank SA
Comment: With the end of November also the pair’s up-trend came to an end and it started to decline. By doing that the pair was pushed into a 95-bar long falling wedge pattern.
At the moment, the Aussie is testing the upper trend-line of the pattern and the monthly S1 at 98.44. Moreover, the pair has fallen below the high importance level at 100. With the bearish technical indicators there is a chance of the currency pair sliding lower below the 97 mark. However, the SWFX traders’ have a different point of view, as a distinct majority of them have opened a long positions towards the pair, namely 72% of them.
AUD/CAD 4H Chart: Falling Wedge
Comment: Similarly to AUD/JPY, also here the Aussie is the underperformer. However, this down-trend started already at the beginning of November, with a falling wedge pattern forming by the end of the month.
Currently, AYD/CAD is close to reaching the 0.94 level and that might be the case, as the daily and weekly S1s were approached yesterday. The majority of the daily technical studies are also bearish, while the 4H and weekly ones are neutral. Moreover, the market participants expect the Aussie to continue depreciating against he Canadian counterpart, at least that is what is suggested by the opened positions, as 58% of them have opened short positions.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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