AUD/CAD is approaching parity
By Dima Chernovolov
• AUD/CAD approaching parity
• Likely to rise to 1.0160 if parity is broken
AUD/CAD last month reversed up sharply from the strong support zone lying between the support level 0.9400 and the 38.2% Fibonacci Correction of the previous extended monthly impulse from 2008 to 2012 (as you can see from the monthly AUD/CAD chart below). The upward reversal from this support zone completed the earlier primary correction ② and created the strong monthly Japanese candlesticks reversal pattern – monthly Bullish Engulfing (which points toward further gains in the near-term perspective).
The pair is currently approaching the resistance at parity. If the pair manages to break above this resistance level, the price should rise further. AUD/CAD will then need to break the monthly Triangle from the start of 2013 – in order to reach the next resistance level 1.0160 (which has been reversing the pair during the last year). The pair might correct down after reaching the resistance level 1.0160.