By: Dima Chernovolov
AUD/CAD recently broke the 4-hour Flag chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Flag at the 6-bar level – which is the result of the sharp Initial Trend (10 bars), lower Uniformity (3 bars) and strong Clarity (8 bars). AUD/CAD is expected to rise toward the forecast price 0,9056 – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily AUD/CAD chart below, the price earlier reversed up from the support area lying between the key support level 0.8980 (which has been reversing the price from November), lower daily Bollinger Band and the 50% Fibonacci correction of the previous ABC wave from October. The proximity of this support area increases the probability AUD/CAD will continue to rise toward the forecast price 0,9056.