The Australian Dollar has been trading in a channel up against the Canadian Dollar since early December 2017. The currency pair bounced off the lower boundary of an ascending channel on December 6 and has since rallied against the Loonie.
The inability for the Aussie to make a new move downwards indicate that the pair might continue to surge. The AUD/CAD has reached a support cluster set by the monthly PP and the weekly PP with the combination of the 100-, and 200-hour SMAs near 0.9919.
If this support cluster holds, the exchange rate could make a U-turn north to test the upper boundary of a junior pattern, where the monthly R2 is located.
