Currency Analyst since 2010

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.

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