Following a reversal from the upper boundary of a dominant descending pattern on June 22, the Australian Dollar has been moving in a two-week narrow downtrend channel against the Canadian Dollar.
During this short period of decline, the currency pair breached the lower boundary of an ascending channel. The rate also breached the 55-. 100-, 200-hour SMAs during this time.
Given that the currency exchange rate is trading in the narrow channel, a breakout to either direction could be expected within the following trading sessions. In the meantime, technical sentiment favour bears to continue downtrend channel against the Canadian Dolla their dominance in the market today.
