Sun, Apr 02, 2023 @ 05:23 GMT
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AUD/CAD 1H Chart: Pair Near Triangle Boundary

The Australian Dollar has been trading in an ascending channel against the Loonie since mid-November. The upper boundary of this pattern and a long-term channel down near 0.9880 was reached five weeks later. Since then, the Aussie’s failure to move below the 0.9782 mark has resulted in the formation of a descending triangle. The pair had reached its upper boundary, likewise reinforced by the 200-hour SMA, on Tuesday morning. From theoretical point of view, this triangle should be breached to the upside. A breakout in this session is also signaled by technical indicators. The subsequent surge is not expected to be long-lasting, as the upper boundary of the senior channel is located nearby circa 0.9860. Taking all this into account, the base scenario favours a test of the senior channel and a reversal near this area.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Group
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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