AUDCAD Chart Technical Outlook breaks the bearish channel formation to the upside
A difficult cross to analyze with both single currencies moving in a bullish direction. With CAD rejecting an upside barrier, the AUD/CAD cross offers a mild upside bias.
We have broken out of a descending channel formation to the upside.
With the reverse trend line support lining up with bespoke support at 0.8950, this looks like a substantial downside barrier.
We can also analyze this price action as the breakout of a Flag formation. This has a measured move target of 0.9120.
Conclusion: correcting lower after the channel breakout resulting from the better-than-expected Australian employment figures overnight. Dip buying is favorable, from a risk-reward perspective, with support located at 0.8950 and 0.8930