Dukascopy Bank Team
Dukascopy Bank SA
AUD/CAD 4H Chart: Falling wedge pattern in sight
The AUD/CAD currency pair has been trading downwards within a falling wedge pattern since the beginning of September.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the predetermined pattern in the medium term. In this case a breakout north could occur by the beginning of November.
Meanwhile, note that the currency pair could gain support from the monthly S1 at 0.9399. If the given level holds, it is likely that a breakout north could occur sooner, and the pair could target the monthly R1 at 0.9676.
AUD/CHF 4H Chart: Bears could prevail
The AUD/CHF exchange rate has been trading within a descending triangle pattern since the end of August.
Given that the currency pair is pressured by the 55– and 100-period moving averages near 0.6570, it is likely that a breakout south could occur within the following trading sessions. The pair could re-test the support level—the Fibo 38.20% at 0.6433.
In the meantime, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the resistance level—the Fibo 50.00%, located at the 0.6695 mark.
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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