AUD/CAD has demonstrated price correction after a sharp drop in the middle of this week, the pair is narrowing its trading range and has formed a Rising Wedge pattern on the 30M chart. The pattern has 80% quality and 86% magnitude in the 131-bar period.
The pattern started when the pair rebounded from 1.0498 and after testing pattern's support band at 1.0414 and 1.0472 it slowed down at 1.0505 where the pair is currently trading. The SWFX market sentiment shows that 60% of traders expect further augmentation of the pair. Technical indicators on aggregate do not suggest any clear emerging trends on 30M and 1H outlooks but point at further appreciation of the pair on 4H time horizon. Long traders could set the first target at the recent peak at 1.0508. If this level is breached next target could be at the pattern resistance band at 1.0513.
The Stochastic indicator is deep in the sell signal zone on 1H and 4H outlooks indicating that we should see short term price correction soon. Short traders should focus on the pattern's support band at 1.0503. If this level is breached next targets could be at 1.0495 and 1.0491.